Stocks get more than 1,200 points boost amid IMF programme revival hope
Business
Reports about progress in talks with IMF are seemingly the reason
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) surged by over 1,200 points during trading on Monday – a surprising but pleasant development just a day after the National Assembly passed the budget for next fiscal year.
It seems the reports about positive developments related to the IMF agreement have boosted the investors’ confidence which propelled the benchmark KSE-100 Index to 41,200 against the previous closing of 40,065.32 on Friday last week.
By the time this report was filed at 01:05pm, the KSE-100 Index was recorded at 41,260.14 with an overall increase of 1,194.82, or 2.98 per cent, during the session.
On Sunday, the National Assembly on Sunday approved the Finance Bill 2023-24, thus endorsing the Rs14.480 trillion budget for the next fiscal year.
The budget was approved under the tight watch of the IMF in an attempt to secure pending funds. The government managed to bill sail through the Lower House of Parliament after getting support of an overwhelming majority.
Separately, it was reported that the IMF expressed its willingness to consider a proposal forwarded by Pakistan to relax its condition concerning $6 billion external financing for the next fiscal year’s budget.
Read more: Pakistan asks IMF to relax $6bn external financing condition
The external financing has been a major bone of contention as the world’s top lender has not approved the 9th review, pending since November last year, with the current IMF programme set to expire within days on June 30.
In its response, the IMF gave green light to the proposal as the government, in return to the easing the external financing condition, opted for increasing the taxes by Rs215 billion as announced by Finance Minister Ishaq Dar in the National Assembly on Saturday.
During the process, the government also agreed to remove all the restrictions imposed on imports - a move that had hepled the country reduce the trade deficit signifcantly.
