COVID 19 First made its appearance in December 2019. The first case was detected in Wuhan, China and took over the whole world in a matter of a few months.

By Ubaid Razaq

Which resulted in the deaths of thousands of people and jolted the economies and the financial markets all over the world. Financial losses were experienced all over the world by the global stock markets and PSX was no exception. Pakistan has experienced three COVID 19 waves by this point.


The first Case of the Novel Coronavirus was reported on 26 February 2020 and the Asian Development Bank (ADB) predicted that Pakistan’s economy will endure heavy losses ranging from $16.38 million to $4.95 billion which was equal to 1.6% of the overall GDP. The Job losses could be as much as 946,000. 


The stock markets of a country are impacted by the major problems or the situations of that country. Similarly, the growing number of COVID cases impacted the PSX as well. The Stock market quickly plummeted and had hit its 5year lowest point by March 19. The reason behind this was the withdrawal of the investment by the foreign investors after the surge in the coronavirus. The IMF helped Pakistan with a Grant of $1.4 billion to fight the surge in the COVID 19 cases. The Data From the PSX official sources show that the Stock market plummeted to 39,382 points after being hit by the First wave but soon recovered to 44,960 points by march 44,960 points because of the Grant provided by the IMF. Then the Index was normal until 2nd wave hit.


The Stock market plummeted by 1900 points when Pakistan started to impose restrictions on commercial and social activities and commenced a lockdown in the major cities of Pakistan like the several other countries to Cope with the 2nd wave of COVID-19. The Stock market lost 1400 points in the first few minutes of trading and was down to 31,283, 4.6% down. The last time such a decline was observed was in march when Pakistan was hit by the 1ST wave of COVID-19.


Pakistan went into lockdown for the third time in April 2021 when it was hit by the Third COVID-19 wave and the stock market plummeted 600 points, reaching 44,707 as the Covid cases in the Country Started rising. This prevented the Investors from making any new investments In the stock market as the corona Cases were on the rise and the future of the stock Market was Uncertain. Soon the Stock market saw a Bullish trend afterward when there were negotiations between the Protestors and the government and the Investors started Making fresh Investments.


Overall, during the Pandemic PSX has been declared the best performing stock market of Asia and the world’s fourth-best performing stock market by a Newyork-based global market research firm in a Report which was titled “Denmark and Pakistan: the surprising stock markets that outperformed in 2020”.