With the collapse of the government in Pakistan, the country’s economy has also been hit hard. The impact of these political developments on the Pakistani stock market is also clear. Meanwhile, the Supreme Court’s decision on the ongoing political crisis has been delayed.
Imran Khan on Sunday (April 3, 2022) proposed to President Arif Alawi to dissolve the parliament. Shortly afterward, the president accepted the offer and dissolved the National Assembly.
On Monday, the Pakistani currency and stock market were delayed for most of the morning and the series continued till the end of the day.
Zafar Moti, former head of the Pakistan Currency Exchange Center, told Deutsche Welle: “The market has been hit hard by the political situation in the country and rising exchange rates. “Investors are worried and they will take their capital out of the market by giving priority to selling shares.”
Meanwhile, Pakistan’s Supreme Court on Wednesday adjourned its decision on whether the deputy speaker violated the constitution by rejecting a no-confidence motion.
The court has been hearing arguments from Imran Khan as well as opposition lawyers since Monday. However, the court said on Tuesday that further hearings were needed and that the trial would continue on Wednesday.
Some circles say that the economic situation of the country was already so bad that it is not right to blame it on the current situation. They add that any change, event or event in the country first affects the stock market. This time too the market political situation has reacted as expected.
The value of the dollar is also steadily rising. At the start of trading on Tuesday, the Interbank Foreign Exchange (IFEX) market witnessed a rise of one rupee and five paise against the dollar.
The first one-dollar transaction took place at a high price of 185 rupees and 40 paise.
Pakistan’s trade deficit has risen to more than 70 percent, according to figures from the Pakistan Bureau of Statistics. The trade deficit between July and March 2022 was estimated at 35 billion and 39 million. Imports amounted to 58 billion and 69 million during the period, while the export value reached only 23 23 billion and 29 million.
According to well-known political analyst Tariq Zafar, Russia’s invasion of Ukraine has led to a significant rise in the price of crude oil and other commodities in the world market. It has also affected Pakistan. He said the purchase of expensive oil had affected Pakistan’s economy. The prices of these commodities have also gone up in Pakistan following the rise in the prices of coal and steel in the international market.
He added that this has led to higher inflation in Pakistan. He said inflation had risen to 12 percent in March.
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