The stock market rose sharply on Tuesday morning after the International Monetary Fund (IMF) approved the release of a $1.1 billion loan tranche.
The benchmark KSE-100 index started rising shortly after trading began, gaining 436.11 points, or 1.03 per cent, by 9:38am to reach 42,940.45 points.
Head of Research at Intermarket Securities, Raza Jafri, said the KSE-100 index continued its strong recovery from intraday lows yesterday and “cheered up” on the IMF programme’s resumption.
“Some profit-taking may come through as the IMF programme isn’t a surprise, but the overall sense is one of optimism particularly as valuations are very cheap,” he added.
A day earlier, the IMF’s Executive Board completed the combined 7th and 8th reviews of a loan facility for Pakistan, allowing immediate disbursement of $1.1bn to the country, said an official IMF announcement.
The statement pointed out that the disbursement “brings total purchases (money made available) for budget support under this arrangement to about $3.9bn.”
The board also approved “rephasing and augmentation” of Pakistan’s access to the funds by SDR720 million ($934m) which will bring the total access under the EFF to about $6.5bn.
The executive board also approved Pakistani authorities’ request for waivers of nonobservance of performance criteria.
More to follow.