The Pakistan Stock Exchange (PSX) witnessed significant volatility this week, driven by escalating global trade tensions and domestic fiscal uncertainties. The benchmark KSE-100 Index experienced sharp fluctuations, reflecting investor apprehension over international economic developments and local policy challenges.​

On Friday, the KSE-100 Index reached an intraday low of 114,701.32 points, shedding 1,487.89 points or 1.28%, before partially recovering to close at 114,153.15. This downturn followed a brief rally on Thursday, where the index had rebounded by 2,036.05 points or 1.78% to close at 116,189.21, spurred by a temporary 90-day pause on U.S. tariffs.

Analysts attribute the market’s turbulence to heightened global trade anxieties, particularly the imposition of new U.S. tariffs on Chinese imports, which have reached 104%. These measures have intensified fears of a global recession, dampening investor sentiment across emerging markets, including Pakistan. ​

Domestically, concerns over fiscal policies and economic reforms have added to market instability. The Federal Board of Revenue (FBR) is preparing for critical discussions with the International Monetary Fund (IMF), with a technical mission set to arrive in Islamabad on April 14. These talks are expected to explore proposals for broadening the tax base and providing relief to the salaried class.

Additionally, a report by the Islamabad-based think tank Tabadlab projects that Pakistan could face an estimated export loss of $564 million in FY2025-26 due to steep new tariffs imposed by the United States. In response, a high-level Pakistani delegation is preparing to travel to Washington to renegotiate trade terms.

Market experts caution that volatility is likely to persist in the coming sessions, with investors closely monitoring developments in global trade policies, IMF negotiations, and domestic fiscal strategies. The interplay of these factors will be critical in shaping the PSX’s trajectory in the near term.