[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The Pakistan Stock Exchange (PSX) reached record highs, propelled by an improving national economy and indications of an impending loan release from the International Monetary Fund (IMF).
Closing at 66,155.02 points, the benchmark KSE-100 index surged past the 66,000-level, marking a substantial gain of 1,436.95 points or 2.22 percent.
Arif Habib Limited, a research firm, anticipates an attractive total return of 32% in 2024 for the KSE100 index, driven by robust earnings growth, appealing valuation, significant domestic liquidity, and comparatively stable economic growth.
Read more : PSX Reaches Record 62,000 Points, Reflecting Investor Confidence
In the midst of this, the IMF’s Executive Board is scheduled to review Pakistan’s first assessment on January 11 next year. This review could potentially unlock $700 million under the standby arrangement (SBA), according to a Bloomberg report citing the lender’s spokesperson on Friday.
While Pakistan has previously reached a staff-level agreement with the IMF under the $3 billion SBA and awaits board approval for accessing a second tranche, recent reports indicate a delay in the initial review’s approval. The delay is attributed to the IMF team’s efforts to secure reconfirmation from multilateral and bilateral creditors, crucial for meeting the fiscal year’s financing requirements of $24.9 billion.
Discussions among policymakers suggest the possibility of IMF talks for the second review taking place after the general elections and the new government’s takeover. Initially scheduled to commence discussions on the second review from February 3, 2024, this might now occur in late February or early March 2024 if elections are slated for February 8, 2024.
The current SBA program is set to expire on April 14, 2024.
IMF Executive Director Bahador Bijani acknowledged overall economic improvement, praising Pakistani authorities for their efforts during an event in Washington. He emphasized Pakistan’s regional and global significance.
Nathan Porter, IMF Mission Chief to Pakistan, expressed contentment with the recent staff-level agreement, praising the current government’s actions and policies as indicative of their commitment to stabilizing the country.[/vc_column_text][/vc_column][/vc_row]
