On Monday, the Pakistan Stock Exchange (PSX) experienced its worst-ever crash. The KSE-100 index, which tracks the performance of the top companies, dropped by a huge 8,687.69 points, falling to 110,103.97. Earlier in the day, the market had already fallen by over 6,000 points. This marked the biggest intraday drop in PSX history.
The main reason behind this crash is fear and panic caused by new trade policies announced by U.S. President Donald Trump. He recently increased tariffs on Pakistani exports from 4-5% to a shocking 29%. This move has created uncertainty in the market and shaken investor confidence.
Investors are worried that these high tariffs will make Pakistani products more expensive in the U.S., leading to a drop in export sales. Since many companies listed on the PSX depend on foreign trade, this news caused heavy selling of shares, pushing the market sharply downward.
Experts are watching the situation closely. While most agree that the new tariffs are bad news for Pakistan’s economy, some analysts believe there might be a small positive side. They say the global trade war might lead to lower prices for imported goods, which could help reduce Pakistan’s overall import bill.
Still, the overall feeling in the market is one of fear and uncertainty. Investors are concerned about what might happen next if trade tensions continue to rise.
The government has yet to announce any clear strategy to deal with this economic shock, and people are hoping for quick action to calm the markets.
This historic fall has reminded everyone how sensitive the stock market can be to global political and economic decisions, and how important it is to have strong trade and financial strategies in place.
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