Pak stocks dive after US Senators introduce bill proposing sanctions

Pakistan's stocks plunged on Wednesday nearly 3 per cent after US Senators introduced legislation seeking to impose sanctions on the Taliban that could be extended to Pakistan.

The Karachi Stock Exchange 100 index, shed 908 points to close at 44,366.74, down 2 per cent, Dawn newspaper reported. Moreover, the Pakistani rupees also suffered due to the bill hitting its lowest ever at PRK 170.27.

Raza Jafri, executive director at Intermarket Securities, said a bill tabled in the US Senate seeks to probe Pakistan's role with respect to the Taliban over the past two decades was the main reason behind the fall today.

"If something is found, they plan to impose sanctions on Pakistan and that is a taboo word and it causes panic. The sentiment was already weak and then it caved in," Jafri said.

A bill was introduced in the US Senate calling for a probe into Pakistan's support to the Taliban for the 2021 offensive that led to the fall of the Afghan government.

The legislation titled the 'Afghanistan Counterterrorism, Oversight, and Accountability Act', aims to address the outstanding issues related to the Administration's rushed withdrawal from Afghanistan.

More than 20 US Senators on Tuesday introduced the bill and demanded sanctions on the Taliban in Afghanistan and the foreign governments that support the outfit, The News International reported.

"Not later than 180 days after the date of the enactment of this Act, and not less frequently than annually thereafter, the Secretary of State, in consultation with the Secretary of Defense and the Director of National Intelligence, shall submit to the appropriate congressional committees a report on entities providing support to the Taliban," the legislation stated.

It further calls for an assessment of "support by state and non-state actors, including the Government of Pakistan, for the Taliban between 2001 and 2020, provision of sanctuary space, financial support, intelligence support, logistics and medical support, training, equipping, and tactical, operational, or strategic direction.

The legislation seeks to assess support by state and non-state actors, including the Pakistan government, for the 2021 offensive of the Taliban that toppled the Government of Afghanistan.

( With inputs from ANI )

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