“Investors react as PSX crashes in wake of Imran Khan’s arrest”
KARACHI: The recent arrest of Imran Khan, the Chairman of Pakistan Tehreek-e-Insaf (PTI), from the Islamabad High Court has caused a ripple effect on the country’s stock market. The Pakistan Stock Market witnessed its worst decline during the opening session, with the 100 index falling 318.89 points at around 10 am, and by noon, the bearish trend had reached 286 points. However, after Imran Khan’s arrest at around 12:00 noon, the market recorded its worst decline, leading investors to adopt a watch-and-wait policy.
At the end of the trading session, the Pakistan Stock Market recorded a massive decline of 455.68 points, equivalent to a 1.09% decrease in business. The index closed at 41373.81 points, resulting in investors incurring losses of over Rs80 billion. This significant loss has created a negative impact on the overall economy of the country.
To read more: Fawad Chaudhry alleges Imran Khan’s abduction from Court premises
The general elections in Punjab and the arrest of Imran Khan have led to hesitation among investors to sell their shares. The pending agreement with the International Monetary Fund (IMF) is also causing uncertainty, contributing to investors’ concerns about Pakistan’s potential default. The political instability has created a sense of apprehension among investors, leading to a bearish trend in the stock market.
Economists have warned that if the political situation remains unstable, the worst downturn can be recorded in the coming days. The country’s economy is already struggling due to various reasons, including high inflation, low GDP growth, and a rising trade deficit. The current political uncertainty and the stock market’s poor performance add to the existing challenges faced by the country’s economy.
The arrest of Imran Khan has caused a significant negative impact on the stock market and the overall economy of Pakistan. The political instability and investors’ hesitation to sell their shares have resulted in significant losses. The government needs to take immediate measures to stabilize the political situation and create a favorable environment for investors to invest in the country’s economy. Failure to do so could lead to severe consequences for the country’s already struggling economy.
To read more: PTI gives shutdown call after Imran Khan’s arrest
