ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) experienced a significant rally on Wednesday, with the benchmark KSE-100 Index climbing by more than 1,300 points in early trading. This surge followed the announcement of a staff-level agreement between Pakistan and the International Monetary Fund (IMF), marking a boost in investor confidence.
Key Market Movement
By 9:20 AM, the KSE-100 Index had reached 117,935.80 points, reflecting an increase of 1,302.64 points, or 1.12%. The rally was driven by widespread buying in key sectors, such as automobile manufacturing, cement, chemicals, commercial banking, oil and gas exploration, oil marketing, power generation, and refineries.
Renowned stock experts noted that the market’s strong opening was directly linked to the IMF deal, with key stocks such as OGDC, MARI, PPL, HUBCO, PSO, SNGPL, and SSGC seeing positive movement.
IMF Agreement Brings New Hope
The positive market sentiment came on the heels of an agreement between Pakistan and the IMF for a new climate resilience loan, valued at $1.3 billion. Additionally, the IMF completed the first review of Pakistan’s ongoing 37-month bailout program. Once approved by the IMF Executive Board, Pakistan will gain access to an additional $1 billion under the Extended Fund Facility (EFF), raising total disbursements under the agreement to $2 billion.
In a statement, the IMF confirmed that the deal would grant Pakistan access to $1.3 billion in funds over the next 28 months, a crucial lifeline for the country’s economic stability. The agreement was finalized after in-depth discussions between IMF officials and Pakistani authorities, which took place from February 24 to March 14, 2025.
Stock Market Volatility and Global Influences
Although the PSX faced volatility on Tuesday, it managed to recover, closing at 116,633.17 points. Analysts anticipate that the positive momentum will continue in the coming days as investors react to the IMF deal and expect enhanced economic stability.
Global market conditions also contributed to the upbeat sentiment. Asian markets mirrored gains from Wall Street, with Japan’s Nikkei 225 rising by 0.35%, South Korea’s KOSPI increasing by 0.37%, and Hong Kong’s Hang Seng climbing by 0.8%. Meanwhile, Chinese blue-chip stocks showed little movement.
Investors are also closely monitoring US trade policy, including new directives from President Donald Trump that involve a delay in some tariffs and a 25% secondary tariff on countries purchasing oil or gas from Venezuela. Oil prices initially spiked due to concerns over these policy changes but later stabilized following US-led maritime security agreements in the Black Sea, amid the ongoing conflict in Ukraine.
Conclusion
The surge in the PSX on the back of the IMF deal marks a crucial development for Pakistan’s economic outlook. With investor confidence rising, the market’s optimism signals potential for further growth, especially as the country secures additional funds to stabilize its economy. However, experts will continue to monitor both domestic economic factors and global developments, which could influence market performance in the coming weeks.
