The Pakistan Stock Exchange (PSX) experienced a significant downturn falling by 572 points, causing the index to drop below the 73,000-point barrier.

The KSE-100 Index closed at 72,679 points.

Inflation, current state of global markets, and the country’s political situation were reported as factors contributing to the dip ahead of the announcement for the forthcoming federal budget for 2024-2025.

The coalition government in Islamabad, led by the Pakistan Muslim League-Nawaz (PML-N), plans to set ambitious fiscal targets in the Budget 2024-25 to bolster its case for a new bailout deal with the International Monetary Fund (IMF).

Pakistan narrowly avoided default last summer thanks to a short-term IMF bailout of $3 billion over nine months.

While fiscal and external deficits have been controlled, this has led to a sharp decline in growth and industrial activity, coupled with high inflation, which averaged close to 30% in the last financial year and 24.52% over the last 11 months.