Pakistan stock exchange crashes as local currency continues its slide against US dollar

By Kiran Butt

ISLAMABAD, Pakistan (AA) - Pakistani stocks suffered losses on Thursday, shedding more than 1,700 points, as the rupee continued to struggle against the US dollar.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index dropped by 1,750 points or almost 3.8%, slipping below 44,500 points.

At the day's close, however, the market corrected itself, reaching 45,002.41, falling 1242.14 points or 2.69% compared to the previous close.

Foreign exchange dealers said the PKR's slide continued, hitting a new all-time low of 305.5. against the greenback in the interbank market.

Abid Sulehri, executive director at the Sustainable Development Policy Institute, described the situation as negative market sentiment. "Dollar is trading against rupee at nearly 307. Electricity, petrol and gold prices are rising, and on top of everything lack of communication from the government is putting the investor under pressure," he told Anadolu.

Traders say the caretaker government, led by Prime Minister Anwarul Haq Kakar, should provide relief, else the situation could get worse.

Meanwhile, protests against high electricity bills have continued nationwide, with people burning utility bills, blocking highways and attacking offices of power companies.

Global lender IMF had put Pakistan under tough conditions to end energy subsidies for a $3 billion loan in July, which aimed at reviving the country's worsening economy.