PSX claws back from steep early slide, boosted by IMF loan outlook
KARACHI: Stocks clawed back heavy early losses on Tuesday, lifted by optimism that an upcoming IMF board meeting will likely approve a loan for Pakistan, as investors seemingly brushed off Pakistan-India tensions for now.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 808 points, or 0.71%, to settle at 114,872.18 amid sustained investor interest and higher volumes.
The market rallied throughout the session, hitting an intraday high of 115,040.58, just shy of its record levels, while the day’s low stood at 112,935.56.
Trading activity remained strong, with over 185 million shares changing hands, generating a total value of Rs22.38 billion. The previous close was recorded at 114,063.90.
Analysts said the market rally was due to the announcement that the IMF Executive Board will soon meet to approve a $1.3 billion loan for Pakistan and a new 28-month support programme to help the country deal with long-term economic challenges.
The IMF board is scheduled to meet on May 9 to discuss the $1.3 billion staff-level agreement (SLA) with Pakistan under its ongoing 37-month bailout programme.
The meeting, as per the statement issued by the IMF, will cater to Pakistan’s Extended Fund Facility (EFF), request for the modification of performance criteria, and request for an arrangement under the Resilience and Sustainability Facility (RSF).
The Washington-based lender and Islamabad reached an SLA and agreed on the first review of the $7 loan facility in March. The SLA, a 28-month deal, would support Pakistan’s efforts to mitigate and adapt to climate change, the IMF had said back then.
If approved by the IMF’s Executive Board, Pakistan will have access to approximately $1 billion under the EFF, bringing total disbursements under the programme to around $2 billion.
Ahead of the upcoming meeting, Finance Minister Muhammad Aurangzeb recently met IMF Managing Director Kristalina Georgieva on the sidelines of the WB/IMF Spring Meetings 2025 in Washington and reaffirmed the government’s commitment to reforms in key sectors.
