Karachi, a city in Pakistan, is the subject of this web article. After Pakistan successfully negotiated a $3 billion agreement with the International Monetary Fund (IMF), the Pakistan Stock Exchange witnessed a notable upswing on Monday. The benchmark KSE-100 Index recorded a gain of 2,446 points, marking the first working day after the deal was finalized.
The KSE-100 index concluded the trading session at a level of 43,899.
At 9:37 am, the KSE-100 Index reached a value of 43,439.33. However, due to the volatile market, trading was suspended only seven minutes after the session commenced.
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The “Halt market” mechanism is triggered when a 5 percent increase or decrease in the index during a trading session.
Trading resumed at 10:42 am, and the bullish sentiments persisted as the KSE-100 Index experienced a significant increase of 2,372.93 points, equivalent to 5.72 percent, reaching a value of 43,825.61 at 11:05 am.
The recent surge in the stock market coincides with a decline in the value of the US dollar against the rupee, which occurred even during the Eid holidays. This can be attributed to the successful agreement made with the world’s leading lender.
The US dollar was traded at rates lower than the official interbank rate of Rs285.99 in certain instances. This occurred as individuals increasingly sold off their hoarded or reserved US dollars in response to the unstable economic conditions.
According to specific experts, there is a possibility of the rupee experiencing an increase of approximately Rs30 within the next one to two days.
Pakistan successfully concluded a staff-level agreement with the International Monetary Fund (IMF) on June 30. This achievement came after several months of negotiations and coincided with the expiration of the previous agreement. The new agreement is valued at $3 billion.
The International Monetary Fund (IMF) staff and the Pakistani authorities have successfully reached a staff-level agreement regarding the policies that will be supported by a Stand-by Arrangement (SBA). According to the International Monetary Fund (IMF), the approval of the staff-level agreement is contingent upon the evaluation and decision of the IMF Executive Board. The board is anticipated to review and deliberate on the agreement by mid-July.
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The Pakistan mission chief, Nathan Porter, led a team from the International Monetary Fund (IMF) in conducting a series of meetings with the Pakistani Authorities, both in-person and virtually. These meetings aimed to deliberate on a prospective financing arrangement for Pakistan, with a specific focus on a Stand-by Arrangement (SBA).
Porter made an announcement regarding the attainment of a staff-level agreement between the International Monetary Fund (IMF) team and the Pakistani authorities about a nine-month Stand-by Arrangement (SBA). Given the challenging circumstances, he emphasized the importance of fully and promptly executing the program to ensure its success.
According to the new agreement, Pakistan must fulfill various conditions and targets established by the International Monetary Fund (IMF). These conditions encompass reforms within the power sector, which entail increasing tariffs on electricity and gas. Additionally, Pakistan must implement further interest rate hikes and allow the market to determine the exchange rate of the rupee.