Index down 450 points in early trade

KSE – 100 Index is down more than 450 points in first hour of trading amidst worries over FATF and worrisome economic indicators i.e. fiscal deficit, fall in FDI, Moody’s downgrade etc.

Moody’s Rating Agency yesterday downgraded Pakistan from stable to negative citing fiscal imbalances amongst other problems, the Agency was also pessimistic on the Amnesty Scheme’s impact on foreign reserves. Furthermore, Federal Board of Revenue (FBR) urged the business community to make the most of the Amnesty Scheme and come under the tax net.

Furthermore, Pakistan’s Current Account deficit rose to a whopping $16 billion during the first 11 months of current fiscal year. Furthermore, current account deficit during the last time period last fiscal year was at $11.1 billion. Pakistan’s Current Account deficit now stands at 5.5 percent of the total Gross Domestic Product (GDP).

In the currency markets, Rupee hit a record low of 125 against the dollar in open market on Wednesday due to short supply of greenback, according to exchange companies. In the interbank market, the local currency closed stronger at 121.46 to the dollar as compared to the previous closing of 121.73.

Furthermore, worsening the woes are projections of a historic uptick in the inflation during the ongoing month. Analysts predict a 44-month high inflation for the month of June clocking in at 5.5 percent last witnessed on October, 2014.