The KSE-100 Index, a market performance benchmark, rose nearly 750 points at the close of the session as investor response strengthened amid rumours that the IMF programme will shortly be resurrected.
At 3:30 pm, the benchmark index was at 42,544.87, up 767.89 points (1.84%) The index has been under pressure for weeks as investors anticipate the IMF program’s resuscitation after the government transition.
Fahad Rauf, head of research at Ismail Iqbal Securities Limited, said the air improved when the finance minister suggested the IMF deal will be disclosed shortly.
The market analyst reported bourse-wide purchasing.
During Tuesday’s federal cabinet meeting, Finance Minister Miftah Ismail announced the next round of IMF discussions will begin tonight.
Miftah expressed hope that the IMF programme will be restarted in the next 24-48 hours as the government attempts to appease its currency market, which has seen the rupee plummet to historic lows.
The rupee fell further on Tuesday, reaching 212 versus the US dollar, as decreasing foreign exchange reserves weighed on the currency.