On Monday, the Pakistan stock market shed over 800 points a day after the Chief Executive – Prime Minister Imran Khan – dissolved the National Assembly. Market talk suggests political uncertainty as the prime reason for the dip. At midday, the market index stood at around 44,335 after experiencing a contraction of 1.8 percent. After reaching its peak of 45,152 points, the market plummeted to its lowest of 44,051 points.
Analysts believe that the losses will be gained back once the political situation settles and uncertainty around it dies down. The market is expected to bounce back as soon as the court gives a decision regarding the proceedings in the National Assembly of Pakistan on 03 April.
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The National Assembly of Pakistan convened a session on the 03 of April to oust the sitting Prime Minister, Imran Khan, through a vote of no confidence. The session was adjourned by the Deputy Speaker Qasim Suri shortly after the former minister for law and justice, Fawad Hussain, raised concerns over a regime change foreign conspiracy.
Minutes after the session was suspended, the Prime Minister came on television and notified the public that he had advised the President to dissolve the assemblies. Soon after his televised address, the decision was announced the President had accepted the advice, and the assemblies would stand dissolved.
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Following the dissolution of the National Assembly and dismissal of the no-trust motion against Prime Minister Imran Khan, Chief Justice of Pakistan Umar Ata Bandial took notice of the prevailing situation and ordered a suo moto notice. Chief Justice of Pakistan Umar Ata Bandial said that “any orders and actions that Prime Minister Imran Khan and President Arif Alvi regarding the dissolution of the National Assembly shall be subject to the order of this court.”
The court is likely to give out its initial remarks by noon, after which the stock market is expected to recover some points as investor trust is revived.
The political situation also took its toll to devalue the rupee. During the month of March, the rupee had depreciated by 3.3 percent against the dollar. There was no respite for the falling currency as the rupee kept plummeting and surpassed the Rs 184 mark at the start of the month of April.
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Prior to this, the stock market on 07 March dropped 1500 points in intraday trading as the rising oil prices amid the international crisis shattered investors’ confidence.