Karachi – April 22, 2025: The Pakistan Stock Exchange (PSX) experienced subdued and range-bound activity in the early hours of trading on Tuesday, with the benchmark KSE-100 Index swinging mildly in both directions. As of 12:22 PM, the index was seen at 118,548.65 points, reflecting a modest gain of 165.27 points, or 0.14%, compared to its previous close.
The limited movement comes in contrast to Monday’s session, when the PSX began the week on a strong note, posting an impressive gain of over 1,000 points. That surge was largely fueled by optimism surrounding ongoing discussions between Pakistan and the International Monetary Fund (IMF), along with a broader rebound in investor sentiment.
Tuesday’s slower pace, however, appears to reflect a cautious mood among investors who are closely monitoring both domestic economic developments and global market shifts. The Finance Division of Pakistan reported that Finance Minister Muhammad Aurangzeb met with IMF Managing Director Kristalina Georgieva on the opening day of the IMF-World Bank Spring Meetings 2025. During the meeting, the minister reassured the IMF of Pakistan’s commitment to continue pursuing structural reforms under the Extended Fund Facility (EFF).
It’s worth noting that Pakistan and the IMF had earlier reached a staff-level agreement on a new EFF program amounting to SDR 5,320 million (approximately USD 7 billion) in July 2024. The agreement was formally approved by the IMF Executive Board in late September, providing a significant confidence boost to the markets. However, continued performance under the program, along with policy implementation and fiscal discipline, remains under close scrutiny by both the IMF and global investors.
While the local stock market reflects measured confidence, international financial markets continue to send mixed signals. On Tuesday, Asian stock markets struggled to maintain their footing amid broader concerns emanating from the United States. Wall Street suffered a steep decline of about 2.5% on Monday, as investor sentiment soured following renewed political pressure on the U.S. Federal Reserve.
Former U.S. President Donald Trump’s vocal criticism of Fed Chair Jerome Powell for not cutting interest rates added to the volatility, causing the U.S. dollar to plunge to three-year lows and putting additional stress on U.S. Treasuries. These developments rippled across global markets, including Asia, where relatively contained losses sparked speculation of a potential capital rotation toward emerging market equities.
For Pakistan, these external pressures add another layer of complexity. Although the KSE-100 Index has shown resilience in recent weeks, market watchers are keeping a close eye on global inflationary trends, monetary policy shifts, and geopolitical tensions that could influence foreign investor behavior.
With the day’s session still ongoing, analysts expect the PSX to remain within a tight trading range unless fresh catalysts—such as IMF updates, macroeconomic data, or corporate earnings releases—shift investor sentiment significantly. In the meantime, the broader outlook for the market remains cautiously optimistic, supported by reform commitments, stable currency trends, and gradual economic recovery.