PSX Surges Over 800 Points Following IMF Announcement
The Pakistan Stock Exchange (PSX) saw a strong rebound on Tuesday, with the benchmark KSE-100 index rising by 808.28 points, or 0.71%, closing at 114,872.18, up from the previous day’s 114,063.90.
According to Awais Ashraf, Director of Research at AKD Securities, the surge was primarily driven by the International Monetary Fund’s (IMF) announcement regarding its Executive Board meeting scheduled for May 9. The meeting will address the approval of a $1.3 billion tranche under the Extended Fund Facility (EFF) and a new 28-month agreement through the Resilience and Sustainability Facility (RSF).
The IMF confirmed that this would include the first review of Pakistan’s existing $7 billion bailout package and a new financing agreement aimed at enhancing climate resilience.
Ashraf noted that investor focus shifted from regional tensions to renewed confidence in Pakistan’s economic reform trajectory, helping fuel bullish sentiment.
On Monday, the market had opened on a positive note but quickly turned volatile as concerns over escalating tensions with India—particularly following the suspension of the Indus Waters Treaty (IWT) and bilateral trade disruptions—triggered panic selling by the session’s end.
Tensions had escalated following a deadly attack in Pahalgam on April 22 that left 26 people dead, mostly tourists, marking the worst violence in the region since 2000. In response, India unilaterally withdrew from the IWT, while Pakistan threatened to suspend the Simla Agreement and block Indian airspace.
Analysts at Topline Securities described the trading day as a “classic tug-of-war” between bullish optimism and bearish pressure. The index initially climbed by 1,189 points in early trading, but late-session selling saw it plummet by 1,601 points before settling with Monday’s sharp loss of 1,405.45 points, or 1.22%.
Despite these swings, Tuesday’s gain signals improved investor confidence amid ongoing macroeconomic developments.
