Stock market crosses 45K level
ISLAMABAD: The Pakistani stock market turned more bullish on Tuesday and the KSE-100 index crossed 45,000 points level with 489 points gain. This development took place in the wake of Saudi Arabia deposited $2 billion in the SBP’s account on Tuesday.
The stock market started trading with 44,750 points this morning, but soon the benchmark index crossed 45,000 points when the news of Saudi deposits hit the market.
The KSE-100 index hit 45,149 highest level on Tuesday and 44,491 lowest level. The volume of the shares traded at the market increased to 140.17 million till 12:50 noon involving Rs 7.18 billion.
Another important development that made the stock market bullish is the IMF’s board meeting on Wednesday (July 12) to approve a $3 billion loan for Pakistan.
Dar discloses $2 billion Saudi deposit
Earlier, Finance Minister Senator Muhammad Ishaq Dar said that Saudi Arabia has deposited $2 billion in the State Bank of Pakistan’s (SBP) account. He disclosed this development on Tuesday through his televised address, a day ahead of the IMF’s executive board meeting.
Ishaq Dar expressed gratitude to the Prime Minister, the army chief, and the leadership of Saudi Arabia for their unwavering support during this challenging economic period.
Finance Minister expressed optimism for the future saying that more good news are expected in the coming days.
Pakistan’s economic situation was gradually stabilizing, he said, adding this infusion of funds from the Kingdom of Saudi Arabia will further improve the country’s financial prospects.
IMF board meets tomorrow to consider approval of loan for Pakistan
The executive board of the IMF is holding a crucial meeting on Wednesday (July 12) in Washington to approve a $3 billion standby arrangement with Pakistan.
The IMF board is holding this meeting in the wake of the signing of a staff-level agreement between the IMF and Pakistan for the resumption of loans.
Meanwhile, the IMF has accepted the external financial plan submitted by the Pakistan government to unlock the IMF bailout program.
Last week, the federal government submitted a financing plan of $8 billion to the International Monetary Fund (IMF). The government submitted the plan ahead of the IMF board meeting on July 12.
Accordingly, China will provide financing up to $3.5 billion, underscoring China’s commitment to deepening strong bilateral relations in the economic, trade, and financial sectors.
China will rollover safe deposits of $2 billion, and reschedule $1.5bn of commercial banks. China’s support during the last few months when the country is in difficult economic circumstances shows China’s commitment to deepening the relations between both countries.
Meanwhile, Saudi Arabia and UAE will contribute $2 billion and $1 billion respectively. Additionally, the Asian Development Bank (ADB) and the World Bank will contribute $500 million each.
Furthermore, the government will obtain $3 billion through the IMF program, signed between the International Monetary Fund (IMF) and Pakistan on June 30.
