PSX jumps on anticipation of IMF programme revival

The Pakistan Stock Exchange (PSX) Monday opened the week on a positive note as it witnessed a 1,000-point plus jump after hopes of the International Money Fund's (IMF) loan revival.

PSX's benchmark KSE-100 index rose 1371.78 points and closed at 41,437.10 points as the market anticipated that Pakistan could revive the stalled IMF loan to avoid a sovereign default.

Saad Ali, a capital market expert, told Thenews.com.pk that the revised budget had revived hopes among the market stakeholders after the government added fresh taxes to the Finance Bill 2023-24.

"The revised budget with additional tax measures have revived market hopes of the resumption of IMF programme as the new budget might meet IMFs condition for adequate fiscal contraction," he said.

Echoing Ali, Head of Research at Pakistan-Kuwait Investment Company Samiullah Tariq said "optimism" regarding the IMF deal resulted in today's market surge.

Tariq also believes that the Pakistani authorities and the IMF could sign the staff-level agreement (SLA) within this week.

The National Assembly (NA) passed the Finance Bill 2023-24 with a majority vote Sunday, with a revised outlay of Rs14.48 trillion after adopting certain amendments to the proposed budgetary measures.

In a last-ditch effort to clinch a stalled rescue package with the IMF, the government introduced a number of changes to its budget for the fiscal year 2024.

The decision to amend the budget had come after Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.

Around five days remain before the IMF's Extended Fund Facility (EFF) agreed in 2019 expires on June 30.

Under the $6.5 billion facility's ninth review, negotiated earlier this year, Pakistan has been trying to secure $1.1 billion of funding stalled since November.

The story is being updated and more details will be added as they come in.