Pakistan stocks rally after policy rate cut, positive developments on IMF front

Stockbrokers monitor the latest share prices at the Pakistan Stock Exchange (PSE) in Karachi on July 3, 2023. (AFP/File)
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Updated 13 September 2024
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Pakistan stocks rally after policy rate cut, positive developments on IMF front

  • The benchmark KSE-100 index rose by more than 800 on Friday morning
  • It declined in the afternoon session to close at 79,333, up by 315 points

ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday rallied by more than 300 points, according to the PSX website, following a policy rate cut by the central bank and positive developments with regard to the country’s International Monetary Fund (IMF) bailout.

The benchmark KSE-100 index rose by more than 800 on Friday morning, but declined in the afternoon trading session to close at 79,333, up by 315 points.

A day earlier, the central bank cut its key policy rate by 200 basis points to 17.5 percent — the third straight reduction since June as the country looks to spur growth as inflation eases.

“The MPC assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target of 5–7 percent and help ensure macroeconomic stability,” the State Bank of Pakistan’s Monetary Policy Committee said in a statement, announcing the cut.

“This would be essential to achieve sustainable economic growth over the medium term.”

Separately, the IMF said its board would meet at the end of this month to discuss Pakistan’s new $7 billion bailout program that was agreed in July.

“All matters with the IMF have been settled amicably,” Finance Minister Muhammad Aurangzeb said in a statement on Thursday. “These matters will be finalized in the meeting of the IMF board this month.”

Pakistan’s sovereign dollar bonds also rallied on Thursday, with the 2031 maturity trading 1 cent higher to bid at 79.93 cents on the dollar, according to Tradeweb data.


No casualties as blast derails Jaffar Express train in Pakistan’s south

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No casualties as blast derails Jaffar Express train in Pakistan’s south

  • Passengers were stranded and railway staffers were clearing the track after blast, official says
  • In March 2025, separatist militants hijacked the same train with hundreds of passengers aboard

QUETTA: A blast hit Jaffar Express and derailed four carriages of the passenger train in Pakistan’s southern Sindh province on Monday, officials said, with no casualties reported.

The blast occurred at the Abad railway station when the Peshawar-bound train was on its way to Sindh’s Sukkur city from Quetta, according to Pakistan Railways’ Quetta Division controller Muhammad Kashif.

No group immediately claimed responsibility for the bomb attack, but passenger trains have often been targeted by Baloch separatist outfits in the restive Balochistan province that borders Sindh.

“Four bogies of the train were derailed due to the intensity of the explosion,” Kashif told Arab News. “No casualty was reported in the latest attack on passenger train.”

Another railway employee, who was aboard the train and requested anonymity, said the train was heading toward Sukkur from Jacobabad when they heard the powerful explosion, which derailed power van among four bogies.

“A small piece of the railway track has been destroyed,” he said, adding that passengers were now standing outside the train and railway staffers were busy clearing the track.

In March last year, fighters belonging to the Balochistan Liberation Army (BLA) separatist group had stormed Jaffar Express with hundreds of passengers on board and took them hostage. The military had rescued them after an hours-long operation that left 33 militants, 23 soldiers, three railway staff and five passengers dead.

The passenger train, which runs between Balochistan’s provincial capital of Quetta and Peshawar in the country’s northwest, had been targeted in at least four bomb attacks last year since the March hijacking, according to an Arab News tally.

Pakistan Railways says it has beefed up security arrangements for passenger trains in the province and increased the number of paramilitary troops on Jaffar Express since the hijacking in March, but militants have continued to target them in the restive region.

Balochistan, Pakistan’s southwestern province that borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces and foreigners, and kidnap government officials.

The separatists accuse the central government of stealing the region’s resources to fund development elsewhere in the country. The Pakistani government denies the allegations and says it is working for the uplift of local communities in Balochistan.