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Shares at the Pakistan Stock Exchange (PSX) rose sharply on Thursday with analysts attributing the rally to news regarding the revival of the International Monetary Fund (IMF) programme.
The benchmark KSE-100 index jumped 633.74 points or 1.6 per cent, to close at 40,350.89 points.
Raza Jafri, head of equity at Intermarket Securities, said the primary reason behind today’s rally was media reports that Saudi Arabia had confirmed to the IIMF its readiness to provide funds to Pakistan, a key condition set by the money lender for a direly needed staff-level agreement.
“Although it is still unconfirmed, this news has given something for investors to cling on to, as it can help revive the IMF programme,” Jafri said.
“Oil exploration companies have led today’s rebound, in a belated catch up to the recent increase in international oil prices.”
Cash-strapped Pakistan is in a race against time to implement measures to reach an agreement with the IMF on the completion of the ninth review of a $7bn loan programme, which began in 2019.
The much-awaited agreement with the lender, which has been delayed since late last year over a policy framework, would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries