Impact of An Uncertain Political System on The Volatility of The Financial Markets in The Fiscal Year 2021–2022. Evidences From Pakistan

Authors

  • Mehtab Begum Siddiqui Assistant Professor, Institute of Commerce, University of Sindh, Jamshoro, Sindh, Pakistan Author
  • Dr. Maria Shaikh Associate Professor, Institute of Business Administration, University of Sindh, Jamshoro, Sindh, Pakistan Author
  • Muhammad Bakhsh Lolai Lecturer, People’s Nursing School, LUMHS, Jamshoro Author
  • Noresh Nazeeruddin Keerio Lecturer, Institute of Business Administration, University of Sufism and Modern Sciences, Bhitshah, Sindh, Pakistan Author

Keywords:

Political Instability, Financial Markets, KSE, KIBOR, FOREX

Abstract

The research aims to calculate the effect of political unpredictability on Pakistan's financial markets over the fiscal years 2021–2022. It also establishes the direction and strength of the association among the “Pakistan Stock Exchange's” political operations and the country's three financial markets—the FOREX market, the interbank market, and the Pakistan Stock Exchange. The OLS model is used to attempt to compute the effects of several forms of political accomplishments on monetary markets after collecting primary data on daily political activity and secondary data on the indicators of the three markets. We discovered through research that these actions have a negative impact on the financial markets under consideration, however the relevance differs for other markets. Numerous additional stochastic activities, many of which have not been considered, along with terrorist actions, are to blame for the poor performance of the financial markets. The report suggests changing the money supply and interest rates to create a more favorable climate for investors and institutional growth in the creative, sustainable business.

https://doi.org/10.5281/zenodo.10287177

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Published

2022-03-31

How to Cite

Impact of An Uncertain Political System on The Volatility of The Financial Markets in The Fiscal Year 2021–2022. Evidences From Pakistan. (2022). International Research Journal of Management and Social Sciences, 3(1), 222-232. http://irjmss.com/index.php/irjmss/article/view/107

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