Karachi: Pakistan stocks fell for the first time this year after the central bank said the government may miss its fiscal deficit target because of the cost of fighting a war against the Taliban militants.
Pak Suzuki Motor Co, the No 1 carmaker, dropped 1.4 per cent to Rs100.32. Bata Pakistan Ltd, a footwear manufacturer, declined 2.7 per cent to Rs850. Adamjee Insurance Co, Pakistan's biggest insurer, slipped 0.2 per cent to Rs132.97.
The budget gap may be as wide as 5.2 per cent of gross domestic product in the year ending June 30, compared with a target of 4.9 per cent, the State Bank of Pakistan said in a report released in Karachi yesterday. The deficit in the year ended June 30, 2009, was 5.2 per cent of GDP.
"The news about the fiscal deficit damped sentiment a bit," said Umair Seddiqi, a senior research analyst with IGI Securities Ltd.
