TRADE & ECONOMY

KSE-100 Index Surges 1,425 Points on IMF Tranche, Ceasefire Relief, and Economic Optimism
The Pakistan Stock Exchange witnessed a strong rally on Friday as the KSE-100 index surged by 1,425.39 points, closing at 119,961.91, marking a 1.20% increase from the previous close of 118,536.52.
This bullish momentum follows Pakistan’s receipt of the second $1 billion tranche from the International Monetary Fund (IMF) under the Extended Fund Facility, further fueling investor confidence.
The market opened strong, gaining 858.23 points (0.73%) early in the session. By 3:18 PM, the index touched an intraday high of 119,990.30, up 1,453.78 points (1.23%) from the day before.
According to Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Ltd, the sharp upswing reflects investor optimism over the IMF’s disbursement, and expectations of additional inflows, especially the $1.4 billion climate funding via the Resilience and Sustainability Facility (RSF) approved on May 9.
The surge also follows last week’s de-escalation of military tensions between Pakistan and India, as both nations agreed to a ceasefire after days of conflict. The market had already rebounded 9% in the previous session, reflecting growing investor sentiment.
Tariq further cited declining yields on treasury bill auctions and hopes of resolving the circular debt crisis in the energy sector as key contributors to the positive trend.
Last month, the energy ministry reported to the National Assembly that the circular debt had declined by Rs9 billion in the first six months of FY25, offering another signal of economic course correction.
With ongoing macroeconomic reforms, international support, and relative geopolitical stability, the stock market continues its recovery trajectory, offering a hopeful outlook to investors and policymakers alike.