Karachi, January 12, 2024 : The Pakistan Stock Exchange (PSX) experienced a second consecutive session of increased buying activity on Friday, spurred by the positive outcome of the International Monetary Fund’s (IMF) Executive Board completing the initial review of Pakistan’s economic reform program.
As per the PSX website, the KSE-100 index surged by 565.79 points, or 0.88%, at 11 am, reaching 65,183.35 from the previous day’s closing figure of 64,617.56.
This uptick followed the successful completion of the initial review of Pakistan’s economic reform program by the Executive Board of the International Monetary Fund (IMF) on Thursday, supported by its Stand-By Arrangement (SBA).
“The approval by the Board paves the way for an instant disbursement of SDR 528 million (approximately US$ 700 million), resulting in a total disbursement of US$ 1.9 billion under the Stand-By Arrangement (SBA),” stated a news release from the Finance Ministry.
The endorsement from the IMF board follows the staff-level agreement established between the Fund and Pakistan on November 15, 2023, underscoring the nation’s dedication to implementing crucial reforms.
The IMF executive board’s green light was achieved through the ongoing efforts of interim Finance Minister Shamshad Akhtar and Army Chief General Asim Munir.
The existing IMF program, amounting to $3 billion, is set to conclude in the second week of April 2024, with approximately $1.8 billion still awaiting disbursement. The initial tranche of $1.2 billion was released by the Fund in July.
It’s worth noting that on November 16 of the previous year, Pakistan and the IMF successfully reached a staff-level agreement pertaining to the first review within Pakistan’s Stand-By Arrangement (SBA).
The agreement reinforces the government’s dedication to progressing with planned fiscal consolidation, expediting cost-reducing reforms in the energy sector, finalizing the transition to a market-determined exchange rate, and actively pursuing reforms in state-owned enterprises and governance. These measures aim to attract investment, promote job creation, and concurrently enhance social assistance initiatives.
