The Pakistan Stock Exchange (PSX) made history on Wednesday as the KSE-100 index surged past the 72,000 mark for the first time ever, buoyed by anticipation of a new bailout package from the International Monetary Fund (IMF).
During the early trading session, the KSE-100 soared to 72,335 points, marking a significant increase of 976 points from the previous day’s closing figure of 71,476 points.
Analysts have attributed this bullish trend in the Pakistani stock market to several factors, including a current account surplus, heightened foreign investment, and a notable rise in IT exports.
Noteworthy sectors driving the market’s performance include oil and gas, banking, fertilizers, and cement.
Earlier this week, Finance Minister Muhammad Aurangzeb expressed confidence in Islamabad’s progress towards securing a new loan from the IMF. In an interview with The National, he stated, “The fund has shown openness to considering a more substantial and extended program.”
Pakistan has formally requested another bailout package from the IMF, ranging between $6 to $8 billion under the Extended Fund Facility, with the potential for additional support through climate financing.
The precise magnitude and duration of the loan will be determined following discussions to finalize the key parameters of the upcoming program in May 2024.
