After a staff-level agreement was signed between Pakistan and the International Monetary Fund (IMF) on Friday, investor confidence returned, leading to a significant gain of more than 2,300 points on the Pakistan Stock Exchange (PSX) on Monday.
The KSE-100 index, the benchmark for the Pakistan Stock Exchange, increased by 2,381 points at 12:00 and is now trading at 43,833 points.
Market analysts credit the restart of the loan programme with the foreign lender for this bullish trend in the PSX.
A $3 billion staff-level agreement between Pakistan and the International Monetary Fund (IMF) was formally signed last week. Prime Minister Shehbaz Sharif, Finance Minister Ishaq Dar, and Information Minister Marriyum Aurangzeb all attended the signing ceremony in Lahore.
The successful conclusion of a “Stand-By Arrangement” between the international financial organisation and Pakistan was announced by the International Monetary Fund (IMF).
The staff-level arrangement, worth $3 billion over a period of nine months, was negotiated virtually by IMF Mission Chief Nathan Porter and his team, who kept in touch with Pakistani authorities at all times.
The IMF executive board will give this deal its final approval; this is anticipated to happen in mid-July. Pakistan will be qualified to receive the $3 billion loan after it has been approved.