KARACHI: Pakistan’s stocks rallied on Monday and rose 0.6 percent to the highest close in more than two months as the International Monetary Fund (IMF) gave some positive signals about its ongoing review of the South Asian country’s $7 billion loan program.
The benchmark KSE-100 index gained more than 1,000 points in the day trade before closing the week’s first session at 116,199.59 points, according to stock analysts.
Sana Tawfik, head of research at Arif Habib Ltd, said the stock market could reach 123,000 points by June if Pakistan sails through the first review of the IMF program.
“This is the highest since January 6,” Tawfik said, citing two main reasons for Monday’s bullish run.
“One is the IMF that issued a statement saying significant progress has been made [in talks with Pakistan] toward reaching the staff-level agreement. [Secondly], the overall sentiment is positive.”
The Washington-based lender put all speculation about its negotiations with Islamabad to an end, when its mission chief, Nathan Porter, said last week the two sides had made “significant progress” toward reaching an accord.
“The mission and the authorities will continue policy discussions virtually to finalize these discussions over the coming days,” Porter said on March 15.
The IMF team stayed in Pakistan for more than two weeks and reviewed the country’s economic reforms under its Extended Fund Facility as well as a fresh loan of about $1.5 billion to increase its climate resilience and sustainability.
“The IMF described the progress of the $7 billion loan program as ‘strong’ despite the absence of a staff-level agreement,” said Naveed Nadeem, a senior equity trader at Topline Securities Ltd., in a note to clients.
Monday’s rally was driven by Mari Energies, Pakistan State Oil, Oil & Gas Development Company Ltd. Lucky Cement and Searle Pakistan that collectively added 658 points to the benchmark index at the Pakistan Stock Exchange.
The equity market also gained some strength from reports of the government’s plan to resolve the longstanding issue of power sector debt, or the circular debt, according to analysts.
“This performance was influenced by the government’s initiatives to tackle Pakistan’s power sector debt,” Nadeem added.
‘Significant progress’ in IMF review triggers bull run at Pakistan stock market
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‘Significant progress’ in IMF review triggers bull run at Pakistan stock market
- The KSE-100 index gained over 1,000 points to close the week’s first session at 116,199.59 points
- The index may rise to a record 123,000 points by June, if Pakistan clears IMF review, analyst says
Pakistan and Egypt vow to expand cooperation, voice support for Palestinian cause
- The development follows an OIC meeting to discuss Israel’s move to recognize Somaliland, a breakaway region of Somalia, as a separate nation
- Muslim countries, including Pakistan, believe the move could be part of Tel Aviv’s plan to forcibly relocate Palestinian Muslims to Somaliland
ISLAMABAD: Pakistan and Egypt on Sunday resolved to boost bilateral cooperation and voiced their support for the Palestinian cause, the Pakistani foreign ministry said.
The statement came after a meeting between Pakistani Foreign Minister Ishaq Dar and his Egyptian counterpart Dr. Badr Abdelatty on the sidelines of an extraordinary session of the Organization of Islamic Cooperation (OIC) in Jeddah.
“The two sides reviewed Pakistan–Egypt bilateral relations, reaffirmed commitment to expanding cooperation across multiple domains, and exchanged views on Gaza and regional developments, underscoring support for international law, the just cause of the Palestinian people,” the Pakistani foreign ministry said.
The 22nd OIC Council of Foreign Ministers meeting was held in Jeddah to discuss Israel’s move last month to recognize Somaliland, a breakaway region of Somalia, as a separate nation. The act has drawn sharp criticism from Muslim nations worldwide.
Muslim countries, including Pakistan, believe the move could be part of Tel Aviv’s plan to forcibly relocate Palestinian Muslims to Somaliland. Several international news outlets last year reported that Israel had contacted Somaliland over the potential resettlement of Palestinians forcibly removed from Gaza.
“We believe that such recognition of an integral part of a sovereign state is not a diplomatic act, but an act of political aggression that sets a perilous precedent, threatening peace and security in the Horn of Africa, the Red Sea region, and beyond,” Dar told participants of the OIC meeting in Jeddah.
The Pakistani foreign minister said Islamabad considers the move a flagrant violation of international law and a direct assault on the territorial integrity of Somalia. He called on all states to refrain from engaging with Somaliland authorities.
Dar also met with OIC Secretary-General Hissein Brahim Taha and highlighted Pakistan’s unwavering support for the sovereignty, unity, and territorial integrity of Somalia.
“Categorically rejecting any proposal for dislocation of Palestinians, he reaffirmed Pakistan’s principled position on Palestine,” the Pakistani foreign ministry said.
“SG commended Pakistan’s consistent and constructive role at OIC in advocating for the causes central to the Muslim Ummah.”
Pakistan does not recognize Israel and has consistently called for an independent Palestinian state based on “internationally agreed parameters” and pre-1967 borders.
