The Pakistani rupee and stock markets took a hit as the government’s budget for the next fiscal year 2022-23 failed to win investor confidence on Monday.
The local currency broke above the critical 204 threshold against the US dollar in the interbank market during intraday trading, while Pakistan Stock Exchange’s benchmark KSE-100 is pushed nearly 800 points, falling below the barrier of the 41,000.
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Former planning minister and top PTI leader Asad Umar also commented on the budget sarcastically, calling the budget for 2022-23 “wonderful”.
He further added that “who else is happy with the budget other than the companies that produce sweets.”
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While capital markets expert Saad Ali said that “sentiment is negative in all capital markets today”.
He mentioned that everyone was looking forward to this budget and that it was seen as a “major milestone”, however, once again the government failed to satisfy the IMF with its budget and is unable to revive the country’s economy.
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“In line with Finance Minister Miftah Ismail’s statement over the weekend, market participants expect the government to review its proposed allocations and targets in the federal budget in order to convince the IMF,” he said. he adds.
Ali also suggested that more clarity would be needed to craft a good budget and gain investor confidence.
(With agency contributions)
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Post expires at 2:30pm on Thursday June 23rd, 2022