Pakistan’s stock market (PSX) staged an impressive recovery on Tuesday as investor sentiment got a big lift from growing optimism over the upcoming International Monetary Fund (IMF) board meeting, which is expected to approve a much-needed loan for the country.
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) surged by 808 points, or 0.71%, to close at 114,872.18, brushing aside early morning losses and ongoing Pakistan-India tensions.
The index remained strong throughout the trading session, hitting an intraday high of 115,040.58—just a step away from record levels. The lowest it dipped during the day was 112,935.56. The upbeat performance signals investors’ growing confidence as the IMF’s decision day draws closer.
Trading activity was also upbeat, with more than 185 million shares changing hands, raking in a good Rs22.38 billion in market value. The previous close had been at 114,063.90.
Market experts believe the rally was mainly driven by news that the IMF Executive Board will meet on May 9 to approve a $1.3 billion loan for Pakistan. This disbursement is part of a broader 28-month support programme aimed at helping the country tackle long-term economic and climate-related challenges.
The board will also review Pakistan’s Extended Fund Facility (EFF) and consider modifications to performance criteria, along with a new arrangement under the Resilience and Sustainability Facility (RSF)—a mechanism designed to support developing economies battling environmental and financial pressures.
If the board greenlights the proposal, Pakistan will gain immediate access to nearly $1 billion, increasing total disbursements under the current programme to around $2 billion.
The government is actively engaging with the IMF to secure the deal. Finance Minister Muhammad Aurangzeb has met recently with IMF Managing Director Kristalina Georgieva during the Spring Meetings 2025 of the World Bank and IMF in Washington. Aurangzeb during the meeting reaffirmed Pakistan’s strong determination to driving forward reforms, particularly in key areas like energy, taxation, and public finance.
