PSX nosedives over 3,900 points as selling pressure intensifies

2026-02-23 - 08:03

KARACHI – Pakistan Stock Exchange (PSX) witnessed massive decline on opening day of the new business week as investors stay cautious amid geopolitical tensions. The KSE-100 index started the day with gains to reach day’s high of 174,336.85 before the bears returned to the market. It has dropped massive 3,912.92 points to reach 169,256.79 points, a negative change of 2.26 percent compared to previous close of 173,169.71 points. Experts have attributed the decline in stock market to escalating tensions between the United States and Iran. Meanwhile, Oil prices dropped about 1% on Monday. Brent crude futures slid 87 cents, or 1.21%, to $70.89 a barrel by 0722 GMT while U.S. West Texas Intermediate crude futures were at $65.63 a barrel, down 85 cents, or 1.28%, according to Reuters. Experts have pointed out that Pakistan’s ongoing financial irregularities have consistently forced the country to seek relief from international financial institutions, particularly the IMF. While these institutions provide temporary relief, the underlying economic issues remain unaddressed. According to statistics, Pakistan’s total government debt has risen to 70% of GDP in 2025, while the budget deficit stands at a concerning 6%, mostly driven by interest payments. The situation has deteriorated to a point where net interest payments now exceed the government’s tax revenue, raising concerns among analysts about the possibility of an impending financial crisis. Economic experts suggest that the government’s primary sources of revenue are limited to taxation and borrowing. However, Pakistan has consistently failed to meet its tax collection targets, while borrowing has surged significantly, plunging the country deeper into debt.