The Pakistan Stock Exchange (PSX) experienced a significant rally as it crossed the 45,000 mark for the first time in 15 months. This surge came after Pakistan received $2 billion from Saudi Arabia, providing a much-needed boost to the cash-strapped nation. The market closed the day at 45,155.79 points, showing an increase of 570.67 points or 1.28% compared to the previous closing.
This rally follows positive news including the cash inflow from Saudi Arabia, an upgrade in Pakistan’s long-term foreign currency issuer default rating by Fitch credit rating agency, and smooth progress in IMF talks with political parties. Experts anticipate further gains in the market throughout the week, buoyed by the upcoming IMF board meeting where Pakistan may receive up to $1.2 billion.
The IMF deal and the subsequent inflow of funds have provided Pakistan with breathing space, preventing a sovereign default and allowing the government to streamline fiscal policies. With the IMF deal in place, Pakistan can now unlock other external financing, which is crucial considering the country’s economic crisis and the need to address high inflation and foreign exchange reserves.
