Pakistan stock market sheds over 3,000 points in two consecutive sessions amid uncertainty after polls

A broker looks at an index board showing the latests share prices at the Pakistan Stock Exchange in Karachi on February 14, 2023. (AFP/File)
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Updated 12 February 2024
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Pakistan stock market sheds over 3,000 points in two consecutive sessions amid uncertainty after polls

  • Thursday’s national election in Pakistan presented no clear winner, with major parties scrambling to form alliances in bid to secure majority
  • Analysts say market will remain jittery for the next few days until a new government comes in with clarity on IMF program, economic policy

KARACHI: Pakistan’s stock market has lost more than 3,000 points in two consecutive sessions, traders and analysts said, amid uncertainty surrounding formation of a new government after Thursday’s indecisive vote.

Thursday’s vote presented no clear winner, with independent candidates, most backed by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party winning 101 parliamentary seats, according to official results.

Three-time former prime minister Nawaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) bagged 75 seats, while former foreign minister Bilawal Bhutto-Zardari-led Pakistan Peoples Party won 54 seats. Currently, major parties are scrambling to form alliances in their bid to secure the simple majority of 169 seats.

Amid a lack of clarity about the future, the benchmark KSE100 index of the Pakistan Stock Exchange (PSX) has remained in negative in the last two consecutive trading sessions after the Feb. 8 election.

The index shed 3,079 points, or 4.8 percent of its value, in the last two sessions on Friday and Monday due to the uncertainty, while it recorded its ninth highest day-on-day (DoD) decline of 1,878 points on Monday, closing at 61,065 points.

Analysts say the current drop at the Pakistani bourse has broken the traditional trend of rallying after the elections.

“Normally, we have seen in the past that post elections market normally goes up or enjoys the clarity, the direction and who’s coming to form the government,” Khurram Schehzad, chief executive officer (CEO) of the Alpha Beta Core financial advisory firm, told Arab News.

“But this time around, this is a little unprecedented because as the results came in, nobody could even guess who’s going to make the government.”

Schehzad said either of the two sessions posted a loss of Rs214 billion ($767 million) in market capitalization, with the cumulative loss in both sessions recorded at Rs427 billion ($1.53 billion).

Analysts say investors typically expect a majority party to form the government, but Thursday’s vote did not present a clear winner.

“So, this uncertainty, lack of direction, lack of clarity, actually leads to investor nervousness, the volatility in the market,” Schehzad explained.

Zafar Moti, CEO of Zafar Moti Capital Securities, also attributed the current bearish trend to the post-election uncertainty, saying the market was doing “quite well technically and fundamentally” before the elections.

“There’s still nothing wrong with our market. We are giving out best payouts, best dividends and best results. And in between these times when Dr. Shamshad was on board, we saw a 67,000[-point] level of peaks also, which was highest in our lifetime,” he said.

Moti said an expected coalition government had still not taken shape in the country three days after the polls.

“Our situation is getting grimmer because this government with so many coalition partners, it’s not taking shape and the results were still giving jitters to the investors,” he added.

Before the elections, foreign funds were getting jitters, but now Pakistani fund managers were giving orders to sell off, according to Moti.

Ahsan Mehanti, CEO of the Arif Habib Corporation securities and brokerage house, said some of the support the key index received during the trading was from strong financial results and “upbeat data on $2.4 billion remittances, up by 26 percent, in January 2024.”

To a question about future outlook of the equity market, analysts said the market needed a “clear direction” after the formation of the government.

“Unless and until we see a peaceful transition of new government and the government without any honeymoon period starts working, the capital market will be in doldrums for coming week,” Moti said.

Schehzad concurred with Moti, saying: “We can see this to continue for the next few days until the new government comes in and someone forms the government and gets some clarity on the IMF (International Monetary Fund) program, on the overall economic management.”

Pakistan’s current $3 billion IMF bailout program is set to expire next month after which the country will have to negotiate a fresh bailout.


Pakistan says protests cost $684 million daily as Imran Khan’s supporters march on Islamabad

Updated 11 sec ago
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Pakistan says protests cost $684 million daily as Imran Khan’s supporters march on Islamabad

  • Finance Ministry’s estimates exclude losses from IT, telecom sectors and provincial economies
  • Imran Khan has called for protests demanding his release, with demonstrations also held abroad

ISLAMABAD: Pakistan’s Ministry of Finance has prepared a report estimating economic losses of Rs190 billion ($684 million) per day due to political protests, Federal Finance Minister Muhammad Aurangzeb said on Sunday, as supporters of jailed former prime minister Imran Khan march toward Islamabad to demand his release.
The protest, led by Khan’s Pakistan Tehreek-e-Insaf (PTI) party, has effectively cut off the federal capital from other cities, with authorities using shipping containers to seal all entry and exit points and announcing the closure of all educational institutions in Islamabad.
The disruption has also impacted small businesses, with slow Internet and telecom services further compounding the economic losses.
“Protests result in a daily loss of Rs190 billion,” the finance minister said in a statement circulated by his office, warning of repercussions for the national economy.
According to the ministry’s report, the GDP suffers a daily loss of Rs144 billion, accounting for the largest share of the economic impact. Additionally, a decline in exports results in a daily loss of Rs26 billion, while disruptions in foreign direct investment contribute Rs3 billion to the daily losses.
Losses in the IT and telecom sectors are significant but separate from these figures.
“The federal government’s daily loss is Rs190 billion, while provincial losses are even higher,” Aurangzeb noted, without providing detailed provincial breakdowns.
Khan, who has been incarcerated for over a year on charges he claims are politically motivated, has urged his followers to rally both in Pakistan and abroad.
PTI supporters in countries such as the United Kingdom, France, Sweden, Spain and Japan have also organized demonstrations, calling for the former prime minister’s release.
As tensions persist, the government remains firm in its resolve to maintain public order, with Finance Minister Aurangzeb stressing that the ongoing unrest is severely undermining the country’s economic recovery efforts.


Pakistan urges climate justice at COP29, highlights gaps in global commitments

Updated 24 November 2024
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Pakistan urges climate justice at COP29, highlights gaps in global commitments

  • It highlights mismatch between developed nations’ pledges and developing countries’ needs
  • Romina Alam says Pakistan is forced into debt to manage the fallout of climate disasters

ISLAMABAD: Pakistan’s top climate change official on Sunday voiced concern over the widening gap between global climate commitments and the needs of vulnerable nations as COP29 ended in Azerbaijan.
Addressing the closing plenary, Romina Khurshid Alam, Prime Minister’s Coordinator on Climate Change, emphasized Pakistan’s acute vulnerability to phenomenon, citing devastating floods, glacial melt, extreme heatwaves and droughts that have affected millions and strained the country’s resources.
“Climate justice is not charity; it is a moral obligation,” she said during her statement, criticizing the mismatch between developed nations’ pledges and the requirements of developing countries to implement their climate plans.
The Pakistani official welcomed the adoption of the Baku Climate Unity Pact, though she expressed “mixed feelings” about the outcomes.
“We note critical gaps in the decisions adopted here,” she said. “Global solidarity is important, but the goals set by developed countries fall short of addressing the needs of developing nations to implement their NDCs [Nationally Determined Contributions] and National Adaptation Plans.”
Alam highlighted the inequity in the international climate finance system, pointing out that countries like Pakistan are being forced into debt to manage the fallout of climate disasters.
“The climate crisis is turning into a debt crisis because the means of implementation are not clear,” she added.
The Pakistani official urged all parties to return to the negotiating table with renewed determination ahead of COP30.
“Multilateralism remains the cornerstone of Pakistan’s climate diplomacy, and we hope for greater equity and commitment in addressing outstanding critical issues,” she added.
Pakistan is ranked as the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. Apart from floods, droughts and heatwaves, the country’s eastern cities in Punjab have also witnessed unprecedented smog, taking the AQI level as high as 2,000.


Imran Khan’s party decries ‘crackdown’ as caravan nears Punjab amid government’s protest ban

Updated 24 November 2024
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Imran Khan’s party decries ‘crackdown’ as caravan nears Punjab amid government’s protest ban

  • Government says it will not allow anyone to disrupt public order amid Belarusian delegation visit to Pakistan
  • PTI caravan from KP expect resistance from federal authorities near Punjab, plans to camp overnight if needed

ISLAMABAD/GHAZI BAROTHA: Sporadic clashes erupted near Islamabad on Sunday as jailed ex-premier Imran Khan’s supporters from nearby Rawalpindi tried to enter the capital in response to a protest call, while their party leaders criticized what they described as a government “crackdown” to block the demonstration.
Khan’s Pakistan Tehreek-e-Insaf (PTI) has launched a “long march” to Islamabad, seeking the release of its founding leader after more than a year of his incarceration on charges it claims are politically motivated.
The party is also protesting alleged rigging in February’s general elections and raising concerns about judicial independence, which it says has been undermined by recent constitutional amendments, a claim the government denies.
Speaking to Arab News, Sayed Zulfikar Bukhari, a senior PTI leader and close aide to Khan, expressed dismay at the government’s response, saying his party only wanted to hold a peaceful protest.
“There is a heavy crackdown in Rawalpindi, as they [the law enforcement officials] have shot rubber bullets, teargas and also picked up people,” he said.
“We just want to do a peaceful protest,” he added. “We will continue [the demonstration] for days to come because we have the right to peaceful assembly and protest.”
Arab News reached out to police officials for comment but did not receive a response.
SECURITY MEASURES
Interior Minister Mohsin Naqvi toured Islamabad, Rawalpindi and Attock by air on Sunday to review security arrangements, expressing satisfaction with the measures and reiterating that the government would take every step to maintain law and order in Islamabad.
“The government has made every possible effort to protect the lives and property of citizens,” Naqvi said, warning that “troublemakers will be dealt with strictly according to the law.”
He added that police, paramilitary Frontier Corps and Rangers were performing their duties with vigilance.
The government has described PTI’s protest as a “deliberate conspiracy” against the country’s “honor,” citing its timing as a 68-member Belarusian delegation arrived in Islamabad for bilateral economic talks.
President Aleksandr Lukashenko is scheduled to arrive in the federal capital on Monday, with officials characterizing the PTI march as an attempt to sabotage Pakistan’s economic recovery.
Naqvi underscored earlier in the day that no one would be allowed to disrupt public order in the federal capital during the visit.
PTI CARAVAN
Meanwhile, the PTI convoy led by Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur left Peshawar around 1:30 p.m. and reached Swabi in the evening, where it was joined by protesters from across the province.
The caravan then proceeded to Ghazi Barotha near Punjab, where it expects resistance from federal authorities.
Hajji Fazal Elahi, a PTI provincial lawmaker, told Arab News the party workers were determined to reach D-Chowk, the protest venue in Islamabad.
“There are hurdles as the government has placed barriers in different places. We will try our best to remove them, but if we don’t succeed, we’ll spend the night here,” he said, referring to Ghazi Barotha.
“We will go to D-Chowk and cross all the barriers, even if it takes a day or two,” he added.
Elahi also acknowledged challenges due to “insufficient machinery” for clearing blockades, adding that the group was prepared to camp at their current location if necessary.
PTI leaders remain defiant, with Gandapur vowing to reach the federal capital “at any cost.”
The party has hinted at an indefinite sit-in in Islamabad, pledging not to return until their demands are met by the government.
 


Pakistani authorities broker seven-day ceasefire between warring factions in Kurram

Updated 24 November 2024
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Pakistani authorities broker seven-day ceasefire between warring factions in Kurram

  • Three-day clashes have killed 82 and injured more than 150, according to local officials
  • KP administration sent delegation to the area, convincing people to settle disputes amicably

PESHAWAR: Following days of clashes that left at least 82 people dead and injured more than 150 in Pakistan’s northwestern Kurram district, provincial authorities in Khyber Pakhtunkhwa (KP) said on Sunday the warring tribes had agreed to temporarily halt attacks and enforce a seven-day ceasefire.
The violence in the restive tribal district bordering Afghanistan began on Thursday when gunmen attacked a convoy carrying members of the minority Shiite community, killing 41 people.
Clashes intensified over the next two days, with sporadic gunfire reported in multiple areas of the district, taking the death toll to 82, according to local officials.
“Both sides agreed on a seven-day ceasefire and to return each other’s prisoners and bodies,” provincial government spokesperson Barrister Muhammad Ali Saif said in a statement.
The development comes just a day after KP Chief Minister Ali Amin Gandapur said the provincial authorities were working toward a ceasefire, adding they would formulate a strategy to address such deadly incidents in consultation with local elders.
Gandapur chaired a meeting via video link to evaluate the situation with officials after his administration dispatched a delegation to Kurram to engage with tribal leaders.
“After meeting Shiite elders a day before, today the jirga [tribal council] members met with Sunni elders, convincing both sides to implement the seven-day ceasefire and settle their disputes amicably,” Saif added.
The clashes in Kurram mark one of the deadliest incidents in the region in recent years, following outbreaks of sectarian violence in July and September that killed dozens.
The KP chief minister noted on Saturday establishing peace in the area was his government’s top priority.
Around 300 families fled on Saturday as gunfights involving both light and heavy weapons continued into the night. However, no fresh casualties were reported on Sunday morning.
Police have regularly struggled to stem violence in Kurram, which was part of the semi-autonomous Federally Administered Tribal Areas until its merger with Khyber Pakhtunkhwa in 2018.
Earlier on Sunday, KP’s Law Minister Aftab Alam Afridi said the provincial administration’s priority was to broker a ceasefire.
“Once that is achieved, we can begin addressing the underlying issues,” he said.
Several hundred people demonstrated against the Kurram violence in Pakistan’s two largest cities, Lahore and Karachi, reflecting nationwide concern over the situation.

With inputs from AFP


Zimbabwe stuns new-look Pakistan in rain-affected first one-day international

Updated 24 November 2024
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Zimbabwe stuns new-look Pakistan in rain-affected first one-day international

  • Pakistan limped to 60-6 in 21 overs before rain denied further play, giving Zimbabwe 80-run win
  • The hosts now have a 1-0 lead against Pakistan in the ODI series ahead of three T20 matches

BULAWAYO, Zimbabwe: All-rounder Sikandar Raza inspired Zimbabwe to a stunning 80-run win on the Duckworth-Lewis-Stern (DLS) method in the rain-affected first one-day international against a new-look Pakistan white-ball team on Sunday.
Raza made a crucial 39 runs and lifted Zimbabwe from a precarious 125-7 to 205 all out by sharing a 62-run eighth wicket stand with number nine batter Richard Ngarava, who top-scored with 48.
Under overcast conditions, Raza picked up two wickets in one over as Pakistan limped to 60-6 in 21 overs before it rained and denied further play as Zimbabwe took a 1-0 lead in the three-match series.

Zimbabwe cricket team celebrate a wicket during the first ODI cricket match against Pakistan at Queens Sports Club in Bulawayo, Zimbabwe, on November 24, 2024. 2024. (AP)

Pakistan’s second-string new ball bowlers – debutant Aamer Jamal and Mohammad Hasnain – couldn’t make an impact on Zimbabwe’s openers after the visitors had rested frontline pacers Shaheen Shah Afridi and Naseem Shah for the white-ball series in Zimbabwe.
Pakistan also rested its ace batter Babar Azam for the first time in an ODI since 2019 as it experimented with its bench strength ahead of next year’s Champions Trophy.
Tadiwanashe Marumani (29) flicked Jamal to square leg for a six and Joylord Gumbie (15) hit three fours against the seamers as they combined in a better than run-a-ball opening stand of 40 runs against a wayward Pakistan pace attack.

Zimbabwe’s Richard Ngarava plays a ball during the first ODI cricket match against Pakistan at Queens Sports Club in Bulawayo, Zimbabwe, on November 24, 2024. 2024. (AP)

Gumbie got run out in a mix-up with Marumani in the sixth over before Pakistan came back hard through its spinners and struck at regular intervals. One of the three Pakistan debutants – left-arm wristspinner Faisal Akram took 3-24 and vice-captain Salman Ali Agha claimed 3-42 as Zimbabwe slipped to 125-7 in the 26th over.
However, Ngarava and Raza thwarted Pakistan’s spinners and pacers alike in a 69-ball stand to give the total respectability. Raza perished when he tried an expansive hit against Akram and was caught on the edge of the boundary while Ngarava was the last man to get dismissed after hitting five fours and a six when he chopped Hasnain back onto his stumps.

Pakistan’s Aamer Jamal celebrates a wicket during the first ODI cricket match against Zimbabwe at Queens Sports Club in Bulawayo, Zimbabwe, on November 24, 2024. (AP)

Fast bowler Blessing Muzarabani used the home conditions to perfection and snared the early wickets of Saim Ayub (11) and Abdullah Shafique (1), who both got caught behind inside the first three overs from the tall pacer.
Kamran Ghulam (17) and skipper Mohammad Rizwan (19 not out) couldn’t pace the chase before Pakistan lost four wickets in the space of 18 runs against the spinners. Ghulam tried to break the shackles but Sean Williams (2-12) got a thick edge and earned Marumani his third catch behind the wickets before Raza had two in three balls.
Raza pinned Salman plumb leg before wicket of his second ball and one ball later Haseebullah Khan was out for zero in his ODI debut when he played the wrong line and was clean bowled.
The three-match ODI series will be followed by three T20s with Bulawayo hosting all the matches.