Shares in Pakistan fell to their lowest level for more than two years on Tuesday as the threat of fresh political turmoil was raised by a split in the country’s coalition government.

The KSE-100 index fell 3.9 per cent to 9,430.29, its lowest close since June 2006 and a fifth successive decline. The benchmark has now shed about 40 per cent after reaching a record high just four months ago. The rupee fell to its weakest level for some 19 years.