KARACHI: The Pakistan Stock Exchange (PSX) reached an all-time peak on Tuesday, driven by optimistic investor sentiment following the International Monetary Fund’s (IMF) approval for a $1.2 billion disbursement to Pakistan.
The key KSE-100 Index closed at an unprecedented 169,456.38 points, marking an increase of 1,153.14 points or 0.69% compared to the previous session’s close of 168,303.24. During the trading session, the index touched an intraday high of 169,601.03, gaining approximately 1,297.79 points. this positive momentum was further supported by the IMF’s swift approval of nearly $1.2 billion under the Extended Fund Facility (EFF), along with an additional $220 million under the Resilience and Sustainability Facility (RSF). These disbursements keep the total program size at $8.4 billion and significantly bolster investor confidence in Pakistan’s economic recovery.
A key driver behind the rally was consistent buying activity by local mutual funds, which contributed to sustaining gains throughout the day. Major stocks in the index collectively added around 640 points to the overall rise.Trading activity remained healthy, with total shares exchanged surpassing 1.02 billion and overall turnover reaching Rs51.1 billion. K-Electric (KEL) emerged as the most traded stock, with a volume of 86.7 million shares.
The strong liquidity, improving macroeconomic indicators, and renewed investor optimism have cemented the bullish trend in the market.
The IMF is set to release $1 billion under the EFF and an additional $200 million under the RSF, bringing the total disbursements for both programs to $3.3 billion.
In a statement, the IMF announced, “Today, the Executive Board completed the second review of Pakistan’s economic reform program supported by the EFF and the first review of the RSF.” This decision facilitates an immediate release of roughly $1 billion under the EFF and approximately $200 million under the RSF, further strengthening Pakistan’s foreign exchange reserves.
The IMF has praised the government’s “strong” implementation of ongoing loan programs and assured continued support for its economic reforms. The recent inflow of funds is expected to further stabilize the economy and support growth prospects.
