KSE-100 Index up 0.86pc amid the progress made in IMF talks
Business
Crosses 80,000 mark as market sees economic stability
KARACHI (Web Desk) – The benchmark KSE-100 Index was up 0.86 per cent after it crossed the 80,000 mark on Wednesday, as the prospects of Islamabad securing another IMF programme are growing while the latest inflation data for June also remained well below the average witnessed in 2023-24.
The latest record came as Minister of State for Finance, Revenue and Power Ali Pervaiz Malik on Wednesday told Reuters that Pakistan is looking to clinch a staff-level agreement on an IMF bailout of more than $6 billion this month after addressing all of the lender's requirements in its annual budget.
Read more: Tough, unpopular budget a stepping stone for IMF programme: Ali Pervaiz
"We hope to culminate this (IMF) process in the next three to four weeks," Malik said, with the aim of thrashing out a staff-level agreement before the IMF board recess.
At one point during early trading, the Pakistan Stock Exchange saw KSE-100 Index touching 80,405.23. However, it settled at 80,233.67 with a net gain of 680.79 points, which represents a 24.08pc jump during the current calendar year.
Earlier on Monday, the Pakistan Bureau of Statistics (PBS) reported that the consumer price index (CPI) for June clocked in at 12.6pc on year-on-year basis.
Although the reading is higher than the 11.8pc rise in May, but is well below the average reading of 23.4pc for the financial year which ended June 30.
But it is not just the progress made in IMF talks as investors are now eyeing an accelerated privatisation of state-owned enterprises – one of the main conditions set by the Bretton Woods Institution.
At the same time, the market is also confident of sizeable interest rate cuts by the central bank in the coming months, with some experts and institutions hoping for up to 4pc reduction in borrowing costs.
Last month, the State Bank of Pakistan’s Monetary Policy Committee started the much-awaited rate cut cycle by slashing the interest rates by 1.5pc to 20.5pc from a record high of 22pc.
