- The KSE -100 index closes up to 117,001.09, 801.50 points.
- Intrade high 117,202.09, reaches an increase of 1,002.5-point.
- The index is less than 116,490.82 during the trading session.
The stock market on Tuesday increased its rapid streak, which was strong as investor as optimism and strengthened after development about circular debt resolution and progress in the International Monetary Fund (IMF) program continued.
The Pakistan Stock Exchange (PSX) benchmark KSE -100 index increased by 801.50 points or 0.69%for closing at 117,001.09 of 116,001.09.
The index touched an intraday high of 117,202.09, while the lowest level recorded during the session was 116,490.82. The energy sector, in particular, was seen in strong purchases, as investors responded to the widespread implications of potential improvement in cash flow and government’s debt restructuring efforts.
Samiullah Tariq, head of the research of Pak-Kuwait Investment Company, said, “About optimism, improving cash flow of energy chain and success of the IMF program,” Samiullah Tariq, head of research of Pak-Kuwait Investment Company, said, highlighted fuel factors.
In a significant development, the IMF has authorized Pakistan to address its growing circular loan without adding its public debt stock to borrow Rs1.25 trillion ($ 4.5 billion) from domestic banks, according to the officials familiar with the matter.
The agreement reached after policy discussions between Pakistani officials and IMF, during which Islamabad presented a six -year roadmap to manage a trillion circular loan of Rs 2, which has reduced the power sector.
IMF approval gives the government a very essential fiscal place, as the new credit will not be included in the country’s official loan data. In order to finance the repayment of these loans, Pakistan in loan service surcharge (DSS) per kW on electricity bills.
Under the scheme, the government intends to retire 1.5 trillion in circular loans through a combination of revenue generated from bank borrowings and overload. Additionally, authorities have estimated a savings of Rs463 billion after the Renaissance with independent power producers (IPPS) and paid low capacity to accommodate tariff structures.
The IMF’s desire to accommodate this restructuring reflects its widespread support for Pakistan’s energy sector reforms under the $ 7 billion extended fund facility (EFF). Officials have said that Pakistan has assured the fund that the collection mechanisms and operational capacity have improved, preventing the emergence of circular loans in future.
Power Minister Awes Ahmed Khan Leghari, while commenting on the matter, said that while the government has not yet received a formal decision, it remains optimistic that the IMF has approved the borrowing plan. He further clarified that the DSS will remain unchanged and will remain part of any final term sheet with banks, with a unit of Rs. Will be below 3.
Meanwhile, the IMF has shared a draft of Economic and Financial Policies (MEFP) memorandum with Pakistani officials, which is another step towards finalizing the ongoing loan review process. The fund has indicated its desire to provide some relief for construction and real estate areas, although it is uncertain whether such incentives will be implemented immediately or will be included in the next financial year budget for 2025-26.
Pakistan and the IMF team discussed last week without gaining a staff-tier agreement (SLA), which is a condition for Islamabad’s formal request to get the next $ 1 billion installment under the EFF. Delay means that before reviewing the Executive Board of IMF in the coming days, there will be policy talks in the coming days to review the case of Pakistan.
PSX started the week on a strong note, continuing the speed of the boom seen in the previous sessions. On Monday, the benchmark KSE -100 index closed 663.42 points, or 0.57%, 116,199.59 points, above 115,536.17 points recorded in the pre -session.
The highest index level during Monday’s session was 116,626.83, while the lowest level was recorded at 115,883.22.
