PSX jumps on anticipation of IMF programme revival
As the International Money Fund (IMF) loan revival hopes grew, the Pakistan Stock Exchange (PSX) opened the week on a positive note Monday.
Pakistan’s benchmark KSE-100 index rose 1371.78 points to 41,437.10 points as markets anticipated Pakistan would be able to revive its stalled IMF loan.
Following the government’s addition of fresh taxes to the Finance Bill 2023-24, capital market expert Saad Ali told Thenews.com.pk that the revised budget had revived market hopes.
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The revised budget with additional tax measures has revived market hopes of IMF program resumption, as the new budget might meet the IMF’s criteria for adequate fiscal contraction.
“Optimism” regarding the IMF deal led to today’s market surge, according to Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company.
In addition, Tariq believes the Pakistani authorities and the IMF can sign the staff-level agreement (SLA) this week.
On Sunday, the National Assembly (NA) passed the Finance Bill 2023-24 with a majority vote, with a revised outlay of Rs14.48 trillion.
Government officials have introduced a number of changes to the fiscal year 2024 budget in a last-ditch effort to reach an agreement with the International Monetary Fund.
Shehbaz Sharif met with Kristalina Georgieva, IMF Managing Director, during the Paris Global Financing Summit, which led to the decision to amend the budget.
June 30 is the expiration date for the Extended Fund Facility (EFF) agreed by the IMF in 2019.
Pakistan has been trying since November to secure $1.1 billion of funding under the $6.5 billion facility’s ninth review, negotiated earlier this year.
More details will be added as they become available.