The Pakistan Stock Market Falls continued for another session on Monday as investor sentiment weakened amid uncertainty surrounding the International Monetary Fund’s (IMF) review talks, a widening trade deficit, and ongoing fiscal challenges.
During the trading session, the benchmark KSE-100 Index experienced a volatile ride. It climbed briefly to an intraday high of 161,988.12 points, but soon slipped into the red, plunging to a low of 158,067.92 points — a sharp decline of over 5,000 points (3.08%) from the previous close of 163,098.19 points.
“Markets are reacting to news flow around the IMF, shortage in FBR revenues, and the increasing trade deficit, which is leading to profit taking and pushing the index down,” explained Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He added that the upcoming results season could help ease some of the pressure in the coming days.
Investor concerns intensified after the IMF review mission ended without reaching a staff-level agreement (SLA). Key sticking points, including external financing requirements and the Governance and Corruption Diagnostic (GCD) report, have delayed progress. Officials expect discussions to resume and conclude next week.
Adding to the negative sentiment, the Federal Board of Revenue (FBR) missed its annual FY25 collection target by Rs1.2 trillion, despite introducing Rs1.3 trillion in new taxes. The shortfall for the first quarter (July–September FY26) stood at Rs190 billion, while the IMF projects that the FBR could miss its annual target by over Rs400 billion this fiscal year.
According to economic analyst AAH Soomro, “It’s an overall correction and healthy exchange of hands as investors assess the evolving domestic political situation and the impact of tensions along the eastern border.”
Meanwhile, the country’s trade deficit widened 46% year-on-year in September 2025 to $3.34 billion, as imports rose 14% to $5.85 billion and exports dropped 11.7% to $2.5 billion, according to the Pakistan Bureau of Statistics (PBS). The July–September deficit also ballooned 32.9% YoY to $9.37 billion, raising fresh concerns about pressure on foreign reserves and the Pakistani rupee.
However, not all indicators were negative. The National Accounts Committee revised the FY25 GDP growth to 3.04% from 2.68%, while remittances jumped 11% YoY to $3.2 billion in September, bringing the first-quarter total to $9.5 billion, an 8% increase year-on-year. The State Bank of Pakistan’s (SBP) reserves inched up by $20 million to $14.4 billion, and the rupee gained slightly to Rs281.17 per US dollar.
On Friday, the KSE-100 had already dropped 735.94 points (0.45%), closing at 164,530.81 points. Over the past week, the Pakistan Stock Market Falls have been consistent, with the index shedding 3.5% week-on-week, closing at 163,098 points as trading volumes fell 7.6% to 1.6 billion shares.
