PSX is expanding a decrease amid “IMF and tax revision” concerns “

• The PSX sinks 1,634 units, closes at 110,301.16.
• The Bearish Sentiment remains as the index hits 109,405 low.
• The KSE -100 sees -1.46% decrease after a short steel -term profits.

The stock market remained under pressure on Wednesday, with investors carefully reacting to the head of the International Monetary Fund (IMF) review and concerns about revenue shortages.

The market has fought in the direction, facing foreign outflows, global economic uncertainties and real estate politics developments.

The Pakistani Stock Exchange (PSX) reference index plunged 1,634.22 points (-1.46%), closing at 110,301.16, below 111,935.38 of the previous session.

The index hit an intraodam high of 112.234.15 before falling to a low 109.405.53 meeting.

Market analysts attributed the silent feeling to the upcoming IMF review, which will begin later this month.

Ahfaz Mustafa, CEO of ISMA IQBal Securities, speaking Geo.tv He said: “Markets are under pressure because of the upcoming IMF review.”

“There is a tax deficit that needs to be addressed and the motives provided in the real estate sector forces people to be careful as it can complicate the review,” he said.

The Federal Revenue Council (FBR) faces a huge RS468 billion revenue deficit for the first seven months (July-January) of FY25, collecting RS6.496 billion for a target of 6.964 billion Rs.

The deficit was expanded by 84 billion Rs in January 2025, with FBR collecting RS872 billions, remaining the target of RS956 billions. While the tax authority has achieved a 29% increase in monthly, remains significantly behind the IMF targets, raising concerns about potential additional tax measures.

Meanwhile, the Prime Minister’s working group for housing completed a Real Estate Relief Package, proposing tax cuts for buyers and sellers to rejuvenate the sector.

The package includes a reduction in real estate sales tax from 4% to 2%, reducing buyer tax from 4% to 0.5% and eliminating federal consumption taxes in real estate transactions. In addition, it proposes tax exemptions for the first housing buyers and the increase in the construction threshold from two -storey three -storey buildings.

While these measures are aimed at boosting real estate investment, they have also raised concerns about their impact on tax revenue and possible complications in IMF negotiations.

The finance ministry’s debt report revealed that Pakistan’s total public debt increased to RS71.2 trillion FY24, increasing 13% from 62.8 trillion Rs in FY23.

Despite efforts to control debt orbit, the government has failed to fulfill the targets of public debt reduction in accordance with the tax liability and debt restriction law.

Domestic debt amounted to RS47.16 trillion, while external debt, in Rupia, reached 24.08 trillion Rs. This increase in debt is still pushing for fiscal prospects, adding concerns about financial stability and Pakistan’s ability to respond to the IMF reforms.

The PSX expanded losses on Tuesday, as a escalation of global commercial tensions, reducing crude oil prices and large foreign outflows, weakened investor confidence.

The KSE-100 reference index fell 809.63 points (-0.72%), closing at 111,935.38 after reaching a high 113,649.07 and low of 111,828,10 degrees.

Analysts noted that the uncertainty about commercial policies, coupled with the political instability and volatility of Rupia, contributed to the Bearish Sentiment.