PSX stays bearish on IMF, policy rate uncertainty

Conditionalities before the start of the final review with the International Monetary Fund (IMF) and uncertainty about the possibility of a rate cut given the Ramazan-driven spike in inflation kept investors in a jittery mood as a result the benchmark KSE 100-share index closed the outgoing week in the red. Arif Habib Ltd (AHL) said the stock market remained under pressure throughout the outgoing week, primarily due to divided opinions about the upcoming monetary policy decision, alongside the government’s negotiations with the IMF for final review. Concurrently, the formation of the cabinet and the appointment of Muhammad Aurangzeb as finance minister brought resolution to lingering uncertainties. AKD Securities Ltd said the additional conditionalities including expanding the tax net, removing specialised tax regimes, reviewing the NFC award, halting gas supply to power producers, and terminating gas subsidies for fertiliser plants all seem to be long-term goals that are put forward by the lender to possibly include in the budget 2024-25 budget.