The Pakistani currency has taken a beating as the government’s budget fails to restore market confidence

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ISLAMABAD: The Pakistani rupee (PKR) and stock markets lost additional ground on Monday as the coalition government’s maiden budget for the fiscal year 2022-23 failed to restore investor confidence, contrary to market expectations, with negative sentiment sweeping the stock markets.

In intraday trade, the Pakistani currency surpassed the critical level of 204 against the US dollar in the interbank market, while the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index plummeted by about 800 points.

The government budget for the 2018 fiscal year is being hailed as a “major milestone” in the stalled $6 billion International Monetary Fund (IMF) programme, according to the expert.

According to analysts, “market players expect the government to reassess its projected allocations and targets set in the federal budget in order to satisfy the IMF,” citing Finance Minister Miftah Ismail’s statement over the weekend.

According to analysts, the federal budget has put the much-anticipated IMF programme in jeopardy. They said that additional explanation is needed because, for the time being, the public believes the government should be doing more.