Investors trim exposure as Pakistan prepares for crucial IMF review under $7 Billion Program
The benchmark KSE-100 Index at the Pakistan Stock Exchange tumbled more than 2,100 points in early trading Monday, reflecting mounting investor anxiety ahead of a key review by the International Monetary Fund.
The index shed 2,140.31 points, or 1.19%, to 177,463.42, down from the previous close of 179,603.73. The sharp decline extended last week’s losses, when the market had already dropped 908.92 points in the final session.
Analysts linked the sell-off to uncertainty surrounding Pakistan’s economic reform agenda and the upcoming third review under the IMF’s $7 billion Extended Fund Facility. An IMF delegation is expected in Islamabad in the final week of February 2026 to assess progress on fiscal consolidation, revenue targets and preparations for the 2026–27 federal budget. Approval of the review would unlock a $1 billion tranche.
Trading volumes also thinned, with 708.968 million shares exchanged worth Rs38.887 billion, compared with 873.996 million shares valued at Rs 41.766 billion in the prior session. Market capitalization slipped to Rs 20.359 trillion from Rs 20.438 trillion
Of 481 traded companies, 231 declined while 194 advanced, signaling broad-based selling pressure. Analysts say near-term direction hinges on clarity from IMF talks and investor confidence in fiscal management, with volatility likely to persist.
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