In a significant development, Pakistan secured approval for a $700 million installment from the International Monetary Fund (IMF), sparking a surge in investor confidence. The Pakistan Stock Exchange’s KSE-100 index experienced a remarkable uptick, reaching an unprecedented high of 57,706 points.
This boost in confidence was further reinforced by the strengthening of the Pakistani rupee against the US dollar in interbank trading.
Two pivotal factors were identified as catalysts for the positive trend in the stock market. Firstly, the announcement of the date for general elections contributed to a favorable investment climate. Secondly, the approval of the IMF-Pakistan standby agreement, a focal point of discussions during the visit of the IMF delegation led by Nathan Porter to Islamabad, played a crucial role.
The IMF-supported economic program for Pakistan emphasizes key priorities such as fiscal consolidation and the reduction of public debt, aiming to enhance economic sustainability and foster balanced growth. Pending approval by the IMF’s Executive Board, the disbursement of approximately $700 million will bring the total funds under the program to nearly $1.9 billion, providing crucial financial support to address economic challenges and pursue Pakistan’s economic goals.
