Pakistan stocks fall, rupee hits record low on concern about US sanctions

Karachi: Pakistan's stocks plunged and the rupee weakened to a record low after US senators moved a bill seeking a probe into Islamabad's alleged role in the Taliban's takeover in Afghanistan.

The benchmark KSE-100 index plunged the most since march 2020. The rupee weakened 0.3% to close at record low 170.48 per dollar, the central bank data showed.

Investors are concerned about the probability of sanctions on Pakistan after the proposed bill in the U.S. Senate, Adnan Khan, head of international sales at Intermarket Securities Ltd., said from Karachi.

Strained relations with the U.S. may hamper Prime Minister Imran Khan's efforts to revive a suspended loan program with the International Monetary Fund. In a Twitter post, Pakistan's human rights minister, Shireen Mazari, said through the bill Islamabad will be made to pay a "heavy price" for being a non-Nato ally of the U.S. in past.