Bulls drive PSX above 169,000 as IMF approves $1.3bn loan for Pakistan

KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) surged on Tuesday, fueled by the International Monetary Fund's (IMF) approval of a $1.3 billion loan tranche, which boosted investor confidence.

During intraday trading, the KSE-100 index broke the 169,000-point barrier, with analysts predicting further gains throughout the day.

The benchmark index rose by 1,016.94 points, reaching 169,320.18 points—a 0.6% increase from its previous close of 168,303.24 points.

IMF approves $1.3 billion for Pakistan to support economic reforms

The International Monetary Fund (IMF) has approved $1.3 billion for Pakistan after clearing two loan tranches under the country’s ongoing reform programme.

The decision follows a staff-level agreement reached in October and marks a significant step in supporting Pakistan’s economic stabilisation efforts. The approval includes nearly $1 billion through the Extended Fund Facility (EFF) and an additional $200 million under the Resilience and Sustainability Facility (RSF).

Ahead of the decision, an IMF team led by Iva Petrova held discussions in Karachi, Islamabad and Washington, DC, between 24 September and 8 October to finalise the agreement.

The lender acknowledged robust programme implementation and underscored the need to sustain fiscal discipline while ensuring support for flood-affected households. It also highlighted the importance of keeping inflation within the State Bank of Pakistan’s target range, restoring the energy sector’s financial health and pushing forward with structural reforms.

The IMF noted progress under the RSF-backed climate agenda, reiterating that recent floods have reinforced the urgency of comprehensive policies to mitigate climate-related risks. The RSF component aims to assist Pakistan in building long-term resilience as climate impacts continue to intensify.