On Tuesday, the Pakistan Stock Exchange (PSX) experienced a significant surge, crossing the 45,000 level for the first time in 14 months. This rise was driven by a $2 billion investment from Saudi Arabia, which provided much-needed relief to the financially strained country. The benchmark KSE-100 index climbed over 500 points during intraday trading, reaching 45,140.30 points, reflecting a 1.24% increase compared to the previous closing.
The market’s positive momentum was further strengthened by Fitch credit rating agency’s upgrade of Pakistan’s long-term foreign currency issuer default rating. This upgrade reflects improved external liquidity and funding conditions following the staff-level agreement reached with the International Monetary Fund (IMF).
Market analysts predict that the positive sentiment will persist, particularly with the upcoming IMF board meeting and the potential receipt of additional funds. The IMF deal has provided Pakistan with a crucial lifeline, averting a sovereign default and enabling the implementation of necessary fiscal policies.
