Stocks Rise as IMF Staff-Level Deal Boosts Investor Confidence
Stocks extended their winning streak on Wednesday. The Pakistan Stock Exchange (PSX) saw another strong session after Pakistan reached a staff-level agreement with the International Monetary Fund.
The KSE-100 Index touched an intraday high of 167,561.69 points. It gained 2,085 points, or 1.26%. However, it later closed at 165,686.38 points, up 210 points from the previous session.
Market experts said the IMF agreement boosted investor confidence. It also reduced uncertainty around Pakistan’s economic direction.
Sentiment Improves
Independent analyst AAH Soomro said the market reacted positively to calm political conditions and progress in talks with the IMF. He noted that the successful completion of negotiations encouraged fresh buying at the PSX.
He added that the market might consolidate until the release of current account data. Earnings reports, he said, will drive future movements.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, said optimism carried over from Tuesday’s rally. The IMF news, combined with upcoming corporate results, kept sentiment high.
On Tuesday, the KSE-100 recorded its second-biggest single-day gain, adding more than 7,000 points.
IMF Agreement Details
The IMF confirmed a staff-level deal late Tuesday. The agreement allows Pakistan to access $1.2 billion after review. The lender will disburse $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility.
Discussions, led by Iva Petrova, took place in Islamabad between September 24 and October 8. The review covered Pakistan’s ongoing economic programmes.
The IMF said Pakistan’s recovery remains on track, with the first current account surplus in 14 years. It praised the country’s efforts to sustain fiscal reforms, control inflation, and stabilize energy prices.
The lender also appreciated Pakistan’s focus on helping flood victims while maintaining financial discipline.
