KARACHI – Pakistan’s equity markets declined while the US dollar strengthened this week, reacting to discussions in the United States about imposing additional tariffs on imported goods.
The benchmark KSE-100 Index lost around 500 points, weighed down by investor caution and selling pressure in commodity-sensitive and export-oriented stocks. Market participants pointed to uncertainty over global trade policies and the looming possibility of expanded US tariffs as the primary trigger for the downturn.
In the currency market, the dollar appreciated against the Pakistani rupee by approximately 0.4%, reaching a fresh multi-week high. Traders attributed the currency movement to anticipated capital outflows and a shift towards the dollar amid fears of trade disruptions and geopolitical risks.
Industry analysts warned that the dual challenge of a volatile rupee and weaker stock valuations could test investor confidence in the near term. They urged authorities to provide clarity on economic reforms and exchange-rate management to restore stability.
Market observers noted that while fears over global trade tensions have caused a short-term dip, long-term performance will depend on external financing inflows, the stance of international rating agencies, and Islamabad’s engagement with lenders such as the IMF.
This story has been reported by PakTribune. All rights reserved.