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ISLAMABAD: Pakistani markets posted their highest gains in a single day on Monday after the International Monetary Fund agreed a bailout plan for the cash-strapped country, with the KSE (Karachi Stock Exchange) index jumping 100 points by 2,400 points.
Prime Minister Shahbaz Sharif congratulated the nation and the business community on the recovery, which he saw as signs of recovery due to the government’s “hard work and sound policies,” and the restoration of investor confidence following Friday’s IMF agreement.
The deal – subject to approval by the International Monetary Fund’s board later this month – came after an eight-month delay and gave Pakistan a respite amid dwindling foreign exchange reserves that have pushed Pakistan to the brink of default on its external debt.
The agreed IMF financing, scheduled to be spread out over nine months, was higher than expected. Islamabad had been awaiting the release of $1.2 billion of the larger $6.7 billion bailout package agreed in 2019. That program expired last week.
Returning to Karachi, the Kuwait Stock Exchange resumed its activity with a rise, as markets opened after the Eid holiday, up 2231.1 points, to 43683.78 points. The jump of more than 5% led to an hour suspension of trading – a precautionary measure to contain volatility. It rose by 2,471.03 points to a day high of 43,923.7 points in pre-noon trading before falling to 43,899 points, up 5.9% from its previous end.
Prime Minister Shahbaz Sharif congratulated the nation and the business community on the recovery, which he saw as signs of recovery due to the government’s “hard work and sound policies,” and the restoration of investor confidence following Friday’s IMF agreement.
The deal – subject to approval by the International Monetary Fund’s board later this month – came after an eight-month delay and gave Pakistan a respite amid dwindling foreign exchange reserves that have pushed Pakistan to the brink of default on its external debt.
The agreed IMF financing, scheduled to be spread out over nine months, was higher than expected. Islamabad had been awaiting the release of $1.2 billion of the larger $6.7 billion bailout package agreed in 2019. That program expired last week.
Returning to Karachi, the Kuwait Stock Exchange resumed its activity with a rise, as markets opened after the Eid holiday, up 2231.1 points, to 43683.78 points. The jump of more than 5% led to an hour suspension of trading – a precautionary measure to contain volatility. It rose by 2,471.03 points to a day high of 43,923.7 points in pre-noon trading before falling to 43,899 points, up 5.9% from its previous end.
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