Pakistan stock market plunges on new govt tax on industries

By MUNIR AHMED
Associated Press

ISLAMABAD (AP) — Pakistan’s Prime Minister Shahbaz Sharif is imposing a new, 10% tax on major industries and a graduated tax on the wealthy. Friday’s announcement sent shockwaves through the country’s stock exchange in the southern port city of Karachi, which briefly halted trading after its benchmark index plunged sharply following the announcement. Sharif says he is taking these measures to “save the country and avoid further taxes on the poor.” The measures are expected to go into effect on July 1, following approval by parliament. Pakistan is in crucial talks with the IMF to revive a $6 billion bailout package which has been on hold since former Prime Minister Imran Khan’s government was ousted in April.