PSX Fluctuates as IMF Talks Drag and US Shutdown Shakes Confidence
The Pakistan Stock Exchange (PSX) traded nervously on Friday. Investors remained cautious as IMF talks dragged on and global market fears grew.
The benchmark KSE-100 Index showed sharp swings. It hit a high of 165,140 points, gaining 610 points, but later dropped to 162,411 points. The fall of more than 2,100 points showed investors’ anxiety.
Market analyst Ahsan Mehanti said uncertainty and geopolitical tension hurt investor confidence. He added that weak oil prices and fears of a prolonged US government shutdown fueled the pressure.
IMF Talks Slow Progress
In Washington, the US shutdown entered its third week after the Senate failed to pass a funding bill. The ongoing deadlock raised global concerns about economic stability and growth.
At home, investors continued to watch developments in Pakistan’s IMF review. Disagreements persisted on external financing details and the pending Governance and Corruption Diagnostic (GCD) report. Both are part of the IMF’s key reform framework.
Officials said the issues could be settled within two weeks. They expect the staff-level agreement (SLA) to follow once differences are resolved.
Remittances Bring Hope
Amid the market’s cautious tone, remittance inflows brought positive news. The State Bank of Pakistan (SBP) reported that overseas workers spent $9.54 billion in the first quarter of FY2026, up 8.4% from last year.
September alone saw inflows of $3.18 billion, rising 11%. The largest contributions came from Saudi Arabia, the UAE, the UK, and the US.
The SBP also confirmed that foreign exchange reserves grew by $20 million to $14.42 billion despite a $500 million Eurobond payment. Total liquid reserves now stand at $19.81 billion.
Analysts believe steady remittances and stable reserves may support sentiment if IMF talks conclude positively.
