Stocks reverse gains after SAPM Asim Bajwa’s resignation

KARACHI: Pakistan’s stocks reversed gains on Monday as Prime Minister Imran Khan’s Special Assistant on Information Lt Gen (retd) Asim Saleem Bajwa resigned days ahead of protests planned by the opposition parties, raising concerns of increased political uncertainty, foreign media reported.

Imran Khan “approved my request” to relinquish the additional post, Asim Bajwasaid in a Twitter post on Monday. He will keep working as the head of the more than $60 billion China Pakistan Economic Corridor (CPEC).

The resignation of Khan’s key spokesman comes amid increasing challenges to his about two-year-old government as he struggles to contain inflation and revive the South Asian country’s economy. Meanwhile, an alliance of 11 opposition parties is planning on holding its first protest rally this week, which is the start of a series of such meetings aimed at ousting Imran Khan.

The benchmark KSE-100 index closed down 1.4%, reversing earlier gains of as much as 0.6%. The stocks have advanced 48% since touching this year’s low on March 25. “The investors are being cautious and booking profits after recent events including Bajwa’s resignation and the opposition’s planned protest add to the uncertainty,” said Qasim Shah, head of international sales at JS Global Capital ltd. in Karachi. The premier had turned down Bajwa’s earlier request to resign.