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.


Pakistan warns citizens in Iran to keep travel documents ready amid intensifying protests

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Pakistan warns citizens in Iran to keep travel documents ready amid intensifying protests

  • Iranian universities reschedule exams, allow foreign students to leave the country for one month
  • Donald Trump pledges support for Iranian protesters as ‘activists’ report more than 2,500 deaths

ISLAMABAD: Pakistan’s top diplomat to Iran on Tuesday urged Pakistani nationals to keep their travel documents handy and advised students to plan ahead after Iranian universities rescheduled examinations to allow international students to leave, as weeks-long nationwide protests further intensified.

Iran has been gripped by protests since late December after shopkeepers in Tehran’s Grand Bazaar shut their businesses to protest worsening economic conditions, triggered by the Iranian rial plunging to record lows against the US dollar.

The demonstrations quickly spread beyond the capital, with unrest reported in most of the country’s 31 provinces and involving traders, students and other groups.

Authorities have responded with arrests, use of force and Internet and mobile network disruptions, which rights groups say are aimed at curbing coordination and limiting coverage of the protests.

At least 100 Pakistani citizens, including students and pilgrims, have returned home through the Pakistan-Iran border in the southwestern province of Balochistan, a Pakistani official told Arab News on Tuesday, though many are still believed to be in the neighboring state.

“I urge all Pakistani citizens in Iran to keep their travel documents, particularly immigration-related documents such as passport and ID cards, readily available with them,” Ambassador Mudassir Tipu said in a post on X. “Those who have expired documents, or their documents are not in their possession, they may kindly urgently approach us for timely and expeditious assistance.”

In a separate post, he said Iranian universities had rescheduled examinations and allowed international students to leave the country for one month, advising Pakistani students to make their plans accordingly.

On Jan. 1, Pakistan advised its citizens to avoid traveling to Iran, citing safety concerns linked to the protests. The Pakistani embassy in Tehran also set up a crisis management unit to provide round-the-clock assistance to citizens.

Iran eased some restrictions on Tuesday, allowing international phone calls via mobile networks for the first time in days, but maintained limits on Internet access and text messaging as the death toll from the protests rose to at least 2,571 people, according to the Associated Press that quoted “activists.”

In a message on Truth Social, US President Donald Trump urged Iranian protesters to continue their anti-government demonstrations, saying “help is on its way,” without providing details. Shortly afterward, Ali Larijani, secretary of Iran’s Supreme National Security Council, accused the United States and Israel of responsibility for the deaths of Iranian civilians.

Iranian state television said officials would hold funerals on Wednesday for “martyrs and security defenders” killed during the unrest, which has intensified over the past week.