KARACHI: Stocks on Tuesday tumbled over 450 points at the Karachi Stock Exchange (KSE) 100 index, sparked by fears of a political crisis as opposition figures called on supporters to join a march against the government on August 14, DawnNews reported.
The KSE-100 index plunged by 450 points to 27,635 in the first 12 minutes of the morning trading session.
Today’s development comes a day after the stock market suffered its largest ever one-day drop in share prices with the KSE-100 index witnessing a free fall of 1,309.09 points, or 4.46 per cent.
The development comes as Islamabad braces for protest marches led by Imran Khan and Tahirul Qadri who have vowed to topple the government of Prime Minister Nawaz Sharif.
The two plan to march on August 14 accompanied by tens of thousands of supporters and have claimed that last year’s general election was rigged.
Both protest rallies will be held on Thursday when Pakistan celebrates its independence day.
Pakistan’s economic outlook has generally improved since the government of business-friendly Sharif came to power.
Foreign exchange reserves have doubled from $7 billion to $14 billion following successful negotiations with the International Monetary Fund for debt servicing assistance, the sale of bonds, as well as auctions for 3G and 4G licences.
In July, ratings agency Moody’s upgraded Pakistan’s country outlook to ‘stable’ from ‘negative’ citing its improving external liquidity position and commitment to reforms.