February, 23, 2024
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Pakistani Market Hits Record High, IMF Tranche Approval Anticipated

Pakistani Market Hits Record High, IMF Tranche Approval Anticipated

Infostani Sources- The Pakistan Stock Exchange experienced a significant rally on Wednesday, reaching an unprecedented psychological level of 58,000 points in its index. Driven by positive economic sentiments. This surge was a historic first for the country. Was fueled by predictions of a 30% growth in the index by December 2024. Also an anticipated reduction in the interest rate to 15%. Share prices saw a remarkable 61% increase. Resulting in a total value surge of 1 trillion 21 billion 43 crore 57 lakh 73 thousand 287 rupees. The market was influenced by factors such as the potential issuance of outstanding debt by the pledgers and the strengthening of the rupee against the dollar.

As the business day concluded, the KSE 100 index recorded a closing at 58198.76 points, marking an increase of 827.17 points. Concurrently, due to expectations regarding the disbursement of the remaining $13.8 billion from lenders following the agreement with the IMF and a balance in supply and demand. The Pakistani rupee continued its weakening trend against the dollar for the fifth consecutive business session on Wednesday. Consequently, the open rate of the dollar dropped below Rs 287. By the end of the business day, the dollar closed at Rs 285.12. Experiencing a decrease of 66 paise in the interbank market. Additionally, the closing value stood at Rs 286, reflecting a decrease of 75 paise.

Moreover, in the local bullion markets, the price of 24-carat gold saw a surge of Rs 900, reaching Rs 216,500 per tola on Wednesday. while the price per ten grams of gold increased by Rs 766 to Rs 14,856.

Pakistani Market Hits Record High, IMF Tranche Approval Anticipated

Pakistan: Anticipated Approval of $700 Million IMF Tranche and Economic Policy Formulation

The IMF Executive Board is expected to convene on December 7 to approve the $700 million tranche for Pakistan. The caretaker government has chosen to formulate an economic blueprint for the next administration to ensure the continuation of current economic policies. Sources indicate ongoing preparations to raise electricity and gas prices ahead of the IMF Executive Board meeting. The tax net will also be extended to include digital markets, property, and the real estate sectors. To secure external financing of $25 billion, assistance will be sought from Gulf countries, China, and commercial banks. China has committed to extending the debt rollover for two years. The board meeting is anticipated to take place 6 to 8 weeks after the staff-level agreement.

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