KARACHI: A bullish trend was witnessed in the Pakistan Stock Exchange (PSX) after the benchmark KSE-100 Index hit a lifetime high surging by 588 points, reaching the 82,800-point mark in opening trade on Thursday.
The upward momentum in PSX comes hours after the International Monetary Fund’s (IMF) board approved a long-awaited $7 billion bailout deal, creating a wave of optimism for the country’s sluggish economy.
The IMF said the new program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners”.
Blue-chip stocks like MCB Bank, Oil and Gas Development Company, National Bank of Pakistan, United Bank Ltd, and Bank Al-Habib saw widespread buying activity, collectively contributing significant points to the overall index’s rise.
Experts note that the approval of the IMF agreement has had a substantial impact on the stock exchange, re-energizing investors and keeping the market firmly in the positive zone throughout the trading session.
Pakistan is expected to receive the first tranche of $1.1 billion by September 30, and the second tranche will also arrive within the same fiscal year once the loan program is approved.
Speaking in New York, Prime Minister Shehbaz Sharif said that he has fulfilled the strict conditions of the IMF and thanked Saudi Arabia, China, and the United Arab Emirates and stressed that it would not have been possible without their support.
Meanwhile, IMF chief Georgieva congratulated Pakistan for moving forward with “home-defined” reforms. “The economy is on the sound path,” she told reporters after the board meeting. “Growth is up and inflation is down,” she said.
