Pakistan stocks dip nearly 3% after US moves Bill proposing sanctions on Taliban, partners

Hours after 22 Republican Senators, including former presidential nominee Mitt Romney, moved a Bill in the US Senate seeking sanctions on the Taliban and partners involved in the collapse of Kabul, Pakistan's stocks plunged nearly 3% on Wednesday.

According to a report by Pakistan based newspaper, Dawn, the Karachi Stock Exchange 100 index, dropped 908 points to close at 44,366.74, while the Pakistani currency also suffered due to the bill hitting its lowest ever at PRK 170.27. According to the executive director at Intermarket Securities, Raza Jafri, the main reason behind the plunge was the Bill tabled in the US Senate to prosecute those involved in the collapse of the Afghanistan government.

"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.

Bill categorically demands investigation to assess Pak-role in Afghan govt collapse

As US Senators tabled a Bill seeking a probe into the collapse of the Ashraf Ghani-led government, Pakistan fears the Bill would find links with the Imran Khan-led government. The legislation titled the "Afghanistan Counterterrorism, Oversight, and Accountability Act", also got the support of the Republican Party.

It addresses the prominent issues that lead to the withdrawal of US forces from the war-torn country. If the Bill is passed, it would ensure sanctions on the Taliban-ruled country and states which supported the extremist organisation. The Bill categorically demanded an investigation to assess Pakistan's role in providing financial support, intelligence support, logistics and medical support, training, equipping, and tactical, operational, or strategic direction to the Taliban between 2001 and 2020.

US to take action against all aspects that led to Afghanistan crisis

"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.

Additionally, the Bill seeks to empower the US President to impose sanctions against any foreign person who has provided support to any terrorist group in Afghanistan, engaged in serious human rights abuses in the war-torn country and played a role in drug trafficking. The Bill also argues identifying the Ambassador of Afghanistan to the US "if he is a member of the Taliban."

(With inputs from ANI, Image: AP)