ISLAMABAD: Pakistan’s caretaker prime minister, Anwaar-ul-Haq Kakar, said on Tuesday his country was hopeful of “successfully” concluding an upcoming review of a $3 billion International Monetary Fund (IMF) short-term facility, which saved the South Asian country from a default earlier this year.
A successful IMF review remains critical for cash-strapped Pakistan, which narrowly escaped a default on its debt obligations in July due to the last-gasp new deal from the IMF that replaced an incomplete and stalled program.
Kakar said the Fund’s team would be arriving in Pakistan on November 2 and the South Asian country had achieved its targets for the review.
“IMF delegation is, God willing, arriving on the 2nd [of November]. We have achieved our targets,” the prime minister said at a press conference.
“So, we are quite comfortable that our negotiations with them for the second tranche will conclude very successfully.”
As part of the bailout deal, Pakistan received the first tranche of $1.2 billion from the IMF in July.
A successful review of the facility will pave way for the next tranche to support the South Asian country, which has been grappling with currency depreciation, depleting foreign exchange reserves and double-digit inflation for months.
Pakistan recently launched a crackdown on currency smugglers, announced curbs on Afghan transit trade and directed authorities to ensure the recent drop in petroleum prices translates into the prices of commodities. The measures have shown some signs of economic recovery.
Kakar said the appreciation of local currency had reduced the circular debt by more than Rs4,000 trillion rupees, while the restrictions on Afghan transit trade had benefitted the local industry.
Pakistan hopeful of ‘successfully’ concluding upcoming IMF review — PM Kakar
https://arab.news/vfp45
Pakistan hopeful of ‘successfully’ concluding upcoming IMF review — PM Kakar
- A successful IMF review remains critical for cash-strapped Pakistan that narrowly escaped a default in July
- PM Anwaar-ul-Haq Kakar says an IMF team will be arriving on Nov 2 and that Pakistan has achieved its targets
Pakistan stocks hit record high on hopes of rate cut, improved US ties
- Benchmark index gains 2,662 points, or 1.44 percent, to close at an all-time high of 187,761 points
- Engro, UBL, Hub Power, Fauji Fertilizer, Meezan Bank and Service Industries added 1,554 points to index
ISLAMABAD: The Pakistan Stock Exchange (PSX) hit a record high as it surpassed the 187,500-point mark on Monday, with analysts citing improving ties with the United States and expectations of an imminent interest rate cut.
The benchmark KSE-100 index gained 2,662.86 points, or 1.44 percent, to close at an all-time high of 187,761.69 points, up from the previous close of 185,098.83 points, according to PSX data.
The stock gains came a day after President Donald Trump invited Prime Minister Shehbaz Sharif to join the so-called “Board of Peace” for Gaza, amid increasing Pakistan-US diplomatic and economic engagement since Trump’s rise to presidency.
“Falling government bond yields and improving Pakistan-US relations played a catalyst role in record close at PSX,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.
Meanwhile, Karachi-based market research firm Topline Securities said bulls extended their rally as hopes of a rate cut by the State Bank of Pakistan (SBP) fueled investor sentiment.
“Investor sentiment remained upbeat, largely fueled by rising expectations of an imminent interest rate cut,” it said in a post on X. “Market participants increasingly priced in a 50bps reduction in the upcoming monetary policy, which kept buying interest alive and underpinned broad-based gains.”
In December, the SBP cut its key policy rate by 50 basis points to 10.5 percent, resuming monetary easing after four meetings in a move that surprised many despite International Monetary Fund guidance to keep policy “appropriately tight” to anchor inflation expectations.
Engro Holdings Limited (ENGROH), United Bank Limited (UBL), Hub Power Company Limited (HUBC), Fauji Fertilizer Company Limited (FFC), Meezan Bank Limited (MEBL) and Service Industries Limited (SRVI) collectively added 1,554 points to the benchmark index on Monday, according to Topline Securities.
“Total market volumes stood at 1,195 million shares, while the value of shares traded amounted to Rs63.7 billion,” the research firm said. “[Bank Makramah Limited] BML led the volume chart, emerging as the most actively traded stock with 246 million shares.”
