The Pakistan Stock Exchange (PSX) reached an unprecedented peak on Thursday, buoyed by investor confidence following the release of a $1 billion tranche from the International Monetary Fund (IMF) and anticipation surrounding the upcoming federal budget. The KSE-100 index rose 1,425 points and ended the day at 119,961, a new record and a rise of 1.20%.
This surge was fueled by the IMF’s disbursement of $1.023 billion under its Extended Fund Facility (EFF) program, aimed at stabilizing Pakistan’s economy through structural reforms. Additionally, the IMF approved a new $1.4 billion loan under its climate resilience fund.
Investor sentiment was further uplifted by the scheduled budget discussions between Pakistan and the IMF, set to take place from May 14 to 23. The federal budget for the next fiscal year, commencing in July, is expected to be finalized within the next four weeks.
The market reacted favorably to changes in the oil industry as well. The government is working on finalizing a legal framework between oil marketing companies and refineries, including clauses like “take-or-pay” to resolve disputes over product upliftment and high-speed diesel imports. This move is anticipated to bring greater clarity and stability to the supply chain.
Trading activity intensified, with a total volume of 695 million shares and a traded value of Rs39.01 billion. With 50.8 million shares traded, Pakistan Refinery Limited was the top-ranked company on the volume chart.
The market’s bullish momentum also reflects a recovery from recent geopolitical tensions. A US-brokered ceasefire between Pakistan and India, following their most intense military standoff in years, contributed to the positive investor outlook.
