Pakistan’s stock market surged by the most in over three years, rising more than 2,000 points, after the much-awaited confirmation of an initial $3 billion loan deal from the International Monetary Fund (IMF).
IMF and Pakistan reached a staff-level agreement on a $3 billion stand-by arrangement. The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.
The IMF arrangement provides some comfort to investors and businesses. The Pakistan Stock Exchange (PSX) opened up by 5.3% or 2231 points for the first time in the history of the country’s bourse during its trading session on Monday as stocks had reopened on Monday following the three-day Eid holiday.
“Today’s gain in benchmark KSE-100 index likely to be highest in the history of Pakistan Stock Exchange,” Topline Securities said in a tweet.
Among the key stocks to surge were the auto stocks as the automakers expect that import restrictions would be lifted under the IMF deal. Several automakers including Pakistan Suzuki Motor Co, had announced plant closures in 2023 due to import restrictions.
Experts forecast that the market may hit the 45,000 level in the short run and surge to the 48,000 level in the long run after Pakistan receives expected inflows from Saudi Arabia and United Arab Emirates (UAE).
