KARACHI – With a positive development on the economic front, Pakistan Stock Exchange skyrocketed on the first working day of the week and the KSE-100 benchmark index surpassed 2,000 points as the government reached a consensus with International Monetary Fund (IMF) on the bailout package.
The crisis-hit nation witnessed a breath of fresh air when the government reached a staff-level agreement with the IMF on $3 billion stand-by arrangement, a much-awaited move.
On Monday, Pakistan Stock Exchange opened up over 5 percent or 2231 points for the first time in trading history. It even halted the market after its opening as the index hit the 5 percent upper cap limit imposed on stock prices.
Impressively, the market touched 43,721 points after the opening rally, experts said the move was anticipated in light of a financing deal with the US-based lender.
The money market regained confidence as the crisis hit the nation expected inflows from Saudi Arabia and United Arab Emirates (UAE).
Meanwhile, Islamabad expects $1.1 billion in funds under a new financing arrangement after the IMF’s board meeting.
IMF said the new SBA ‘builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported programme which expired end June. This agreement is subject to approval by the IMF’s Executive Board, which is expected to consider this request by mid-July’.
The new deal is being lauded by economic experts and stakeholders, especially the business community, as lack of clarity on the fate of IMF programme was impacting badly the prospects for an improvement in economic conditions of the country and lives of the people.
Pakistan bailout review to conclude once financing in place: IMF
