Karachi: The KSE-100 index experienced a significant drop of 1,332 points, closing at 116,255, with 815 million shares traded. The decline, led by major losses in stocks such as PSX, PGLC, and SNGP, reflected a day of volatility on the Pakistan Stock Exchange. In contrast, companies like AICL, ENGROH, and MUREB saw positive performance based on price changes. Trading activity was primarily focused on the Refinery, Technology, and Food sectors.

According to Taurus Securities Limited, the market's downturn coincides with a range of pressing economic developments. The International Monetary Fund (IMF) has pushed for a higher gas levy on captive power plants while dismissing calls for flexibility on key reforms. Analysts predict a surge in inflation during the second half of FY25, driven by the base effect and an anticipated increase in energy prices. Meanwhile, Pakistan's debt stocks have reached Rs70.37 trillion by the end of November, and National Savings Schemes saw an inflow of Rs14.5 billion during the same month.

In other economic news, the Exim Bank's revival has been identified as a top priority by Aurangzeb, while cotton arrivals in Pakistan have decreased by 33%. Additionally, trade between Pakistan and China has been interrupted due to ongoing protests in Hunza over power outages. To stabilize reserves, CSBP has reportedly purchased a record $9 billion. In corporate developments, Pakistan Petroleum Limited's subsidiary received a $6 million settlement from Iraq's Midland Oil Company, and Pakistan's Symmetry Group has partnered with Dubai-based Aleph Holdings, aiming for $5 million in revenue. The downstream oil sector is also undergoing deregulation, and mutual fund 'Investment Plans' are being reviewed.