The Pakistan Stock Exchange (PSX) experienced a surge in buying activity for the second consecutive session on Friday, following the successful conclusion of the International Monetary Fund's (IMF) Executive Board's first review of Pakistan's economic reform program.
As per the PSX website, at 11 am, the KSE-100 index rose by 565.79 points or 0.88%, reaching 65,183.35 from the previous close of 64,617.56.
The approval by the IMF Executive Board allows for an immediate disbursement of SDR 528 million (around US$ 700 million), bringing the total disbursements under the Stand-By Arrangement (SBA) to US$ 1.9 billion, according to a Finance Ministry news release.
The IMF's approval comes after the staff-level agreement reached between the Fund and Pakistan on November 15, 2023, signifying the nation's commitment to implementing essential reforms.
The approval from the IMF executive board follows the ongoing efforts of caretaker Finance Minister Shamshad Akhtar and Army Chief General Asim Munir.
The current IMF program, amounting to $3 billion, is set to conclude in the second week of April 2024, with approximately $1.8 billion remaining undisbursed. The Fund had released the first tranche of $1.2 billion in July.
It is noteworthy that on November 16 of the previous year, Pakistan and the IMF reached a staff-level agreement on the first review under Pakistan’s Stand-By Arrangement. The agreement supports the authorities' commitment to advancing fiscal consolidation, expediting cost-reducing reforms in the energy sector, completing the return to a market-determined exchange rate, and pursuing state-owned enterprise and governance reforms to attract investment and support job creation while strengthening social assistance.
