The Pakistan Stock Exchange (PSX) saw a sharp decline on Tuesday, with the benchmark KSE-100 index dropping by over 700 points in intraday trade. This was attributed to concerns about tough talks with the IMF for a new loan facility, uncertainty about monetary policy direction, and inflationary pressure due to the onset of Ramazan. Investors remained cautious, leading to profit-taking and reducing expectations of a rate cut by the Monetary Policy Committee (MPC). Meetings with the IMF staff are scheduled to begin soon, raising the possibility of tough actions demanded for the new loan facility.
