Islamabad,17 November, 2023 (GNP): After reaching a staff-level agreement with the International Monetary Fund (IMF), Pakistan’s benchmark KSE-100 index surged beyond 57,000 points, accompanied by a recovery in the rupee against the dollar. The country had secured a staff-level agreement with the IMF for the first review of a $3 billion bailout the day before.
Upon receiving approval from the Fund’s Executive Board, Pakistan is set to gain access to approximately $700 million. This disbursement will contribute to the overall sum under the program, reaching nearly $1.9 billion, as stated by the IMF in a Wednesday announcement.
The KSE-100 index achieved an intraday peak at 57,549.26 points but concluded at 57,397.02 points, marking a gain of 716.96 points or 1.26%. This closing figure reflects an increase from the prior day’s closing value of 56,680.06 points.
According to Dr. Khaqan Hassan Najeeb, a former adviser of the finance ministry, the Pakistan Stock Exchange (PSX) experienced a lift following the staff-level agreement with the IMF. He further explained that the anticipated $700 million from the global lender would facilitate Pakistan in securing “much-needed” external financing.
The economist is of the opinion that the inflow of external financing will provide reassurance to the forex market. This boost in supply, along with various debt instruments, including financing from multilaterals such as program and project loans, is anticipated to have positive effects on the overall economic scenario.
Trading volumes surged to 1.25 billion shares, with a total share value of Rs37.4 billion for the day. Among the 385 companies whose shares were traded, 220 saw an increase, 147 experienced a decline, while 18 remained unchanged.
WorldCall Telecom led in trading volume with 386.3 million shares, closing at Rs1.59 after gaining Rs0.19. Following this, Cnergyico PK traded 45.1 million shares, closing at Rs4.70 with a loss of Rs0.04. Pakistan Refinery Limited traded 39.5 million shares, closing at Rs24.97 after gaining Rs0.73.