Following a staff level agreement between Pakistan and the International Monetary Fund (IMF), The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) went beyond 57,000 points while the rupee also recovered against the dollar during intra-day trading in the interbank market.
Pakistan, a day ago, had entered into a staff level agreement with the IMF on the first review of the $ 3 billion bailout.
With the approval of the Fund’s Executive Board, Pakistan will have access to approximately $ 700 million, bringing the total payments under the program to approximately $ 1.9 billion, The IMF announced in a statement on Wednesday.
Today، Rupees broke their 17-session losing streak after taking a 2.14 against the dollar and Rs 286 against Greenback in the interbank market during intra-day trading I am being traded; Geo News reported. The local currency closed at Rs. 288.14 on Wednesday.
In the PSX, the benchmark KSE-100 index surpassed 57,000 points around 10:20 a.m., creating another milestone.
Benchmark KSE-100 Index at 10:54 p.m. Taken from PSX — Screenshot
Benchmark KSE-100 Index at 10:54 p.m. Taken from PSX — Screenshot
In conversation with Geo.tv، Former Finance Ministry Adviser Dr. Khakan Hassan Najib said PSX encouraged the staff level agreement with the IMF. He added that $700 million from global lenders would help Pakistan “much-needed” pave the way for external financing.
“IMF approval means that the government has worked on financial stability as well as changes in energy prices that reduce circular debt، Dr. Najib said.
Economists believe that external financing “flow will give some relief to the foreign exchange market as well as supply-side growth and debt instruments, including multilateral financing, Both program and project loan ”.
He added that after the IMF agreement, bilateral and rollover, friendly countries and trade funds will start coming in.
“Rupee will certainly be determined by the type of flow we see and the type of demand that arises on the import side. In the long run, I always say that rupee parity with any foreign currency is a function of the country’s productivity, Dr. Najib said on the definition of rupee.
