The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) rose beyond 57,000 points and the rupee recovered against the dollar after Pakistan and the International Monetary Fund (IMF) reached an agreement at the staff level.
Pakistan and the IMF staff had agreed on the first evaluation of a $3 billion bailout the day before.
The International Monetary Fund (IMF) stated on Wednesday that, pending approval by the Fund’s Executive Board, Pakistan would receive access to roughly $700 million, bringing total disbursements under the programme to nearly $1.9 billion.
According to data from the State Bank of Pakistan, today marked the end of a 17-day losing trend for the rupee as it appreciated by Rs0.76 against the dollar, ultimately closing at Rs287.38 in the interbank market. As of Wednesday’s market closure, one rupee was worth Rs288.14.
The day’s high for the key KSE-100 index was 57,549.26. The market ended the day at 57,397.02 points, up from the previous closing of 56,680.06 points, a gain of 716.96 points (1.26%).
Ex-finance ministry adviser Dr. Khaqan Hassan Najeeb told Geo.tv that the PSX rose after an agreement was reached at the staff level with the IMF. He noted that the $700 million from the global lender will assist Pakistan create room for “much-needed” foreign financing.
Dr. Najeeb explained that the reduction of the circular debt was the result of the government’s efforts at fiscal consolidation and the adjustment in energy prices.