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Brexit Business Impact on Pakistan

The hurry and the shock with the Brexit news that caught the world unawares impacted the entire world economies, in terms of business. Financial markets were immediately effected with low intensity and limited scope. It is anticipated that with time financial systems will be more affected with Brexit, hitting the soft spots.

According to the Deputy Governor of State Bank Pakistan, Brexit will have its prominent impact in a few months on the entire Pakistani economy as well. Very soon after the Brexit vote, KSE-100 index will shed 848 points or 2.22pc at the end of the trading session after witnessing a steeper intra-day decline. According to most of the business observers in Pakistan, this was a panic selling for no good reasons and categorized it as simply a reflection of a meltdown in global markets.

Pound went to the worth of Rs. 146 in the interbank market on the first working day after the news getting viral on the social media. There were no local factors behind this change but only the banks, which were long in pound sterling, sold them for the greenbacks. In fact, some currency speculators were hoarding the British pound, believing that Britain would not decide to leave the European Union. After they got extremely disappointed, they went to panic selling.

Pakistan Stock Exchange will continue to face highs and lows according to the shuffle in the economies of various other countries of the world due to Brexit. More hasty decisions are expected from the foreign investors.

Afreen is a young writer and visionary towards life predominantly. I believe that writing is similar to life; it inspires surprises and creates. Being a Literature Masters, I am passionate about viewing the world with literary spectacle. Solely in love with this beautiful part of Universe called Pakistan, I am creating words and ideas for CharchaGuru.

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