Shares fall 679 points on IMF delay, forex crisis

KARACHI, Dec 28 (SABAH): Shares at the Pakistan Stock Exchange (PSX) fell sharply for a second day on Wednesday, with analysts citing delays in the completion of the International Monetary Fund’s (IMF) ninth review, the foreign exchange crisis and exchange rate instability.

The benchmark KSE-100 index lost 679.07 points, or 1.71 per cent, to reach 39,123.84 points.

Meanwhile, dollars have disappeared from the open market, while a crisis in the interbank market has led to the stoppage of foreign payments. The country is unable to clear the dues owed to airlines or make payments for imported goods waiting at ports.

Opening letters of credit (LCs) has become a challenge with several companies temporarily stopping production because of a shortage of imported raw materials.