KARACHI: After the completion of the first review of the $3-billion Stand-By Arrangement (SBA) by the International Monetary Fund’s (IMF) Executive Board, the Pakistan Stock Exchange (PSX) experienced a surge in buying activity. On Friday, the benchmark KSE-100 Index rose by more than 600 points during trading.
At 10:25 am, the KSE-100 index maintained a level of 65,309.90, marking a rise of 692.34 points or 1.07%. Robust buying activity was observed across various sectors, with key players such as cement, chemicals, commercial banks, oil and gas exploration firms, OMCs, and refinery sectors all experiencing positive trading trends.
On Thursday’s closing, the PSX demonstrated a rebound, registering a gain of over 1%, propelled by speculation about an impending rate cut in the upcoming January Monetary Policy Committee (MPC) meeting. The KSE-100 index concluded at 64,617.57, reflecting an increase of 697.72 points or 1.09%.
During Thursday night, the Executive Board of the International Monetary Fund (IMF) successfully completed the inaugural review of Pakistan’s economic reform program, supported by the IMF’s Stand-By Arrangement (SBA). The Board’s decision paved the way for an immediate disbursement of SDR 528 million (approximately $700 million), bringing the total disbursements under the arrangement to SDR 1.422 billion (around $1.9 billion).
Pakistan’s 9-month SBA, endorsed by the Executive Board on July 12, 2023, amounted to SDR 2.250 billion (approximately $3 billion at the time of approval).
According to the IMF, the program’s objective is to furnish Pakistan with a policy anchor to address both domestic and external balances, along with a structured framework for financial support from both multilateral and bilateral partners.
