Karachi, March 18, 2025 – The Pakistan Stock Exchange (PSX) surged 801 points on Tuesday, buoyed by growing investor confidence following positive developments regarding IMF-backed financial measures.
The KSE-100 index, the benchmark for the PSX, closed at 117,001 points, marking a strong increase from the previous day’s 116,200 points.
IMF Developments Drive PSX Rally
Analysts at Topline Securities Limited highlighted that the bulls dominated the trading session, pushing the index to an intraday high of 1,002 points before settling at a gain of 0.69%. This rally was largely fueled by optimism surrounding the International Monetary Fund (IMF), as news surfaced that Pakistan had been granted permission to borrow Rs1.25 trillion ($4.5 billion) from domestic banks. This funding is intended to tackle the Rs2.4 trillion circular debt crisis in the power sector without further straining public debt.
Investor sentiment was further bolstered when the IMF shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities. This step marks significant progress toward reaching a staff-level agreement under the $7 billion Extended Fund Facility (EFF). The move reinforced market optimism, as it signals continued financial support and economic stability, crucial factors for the PSX’s momentum.
Key Contributors to PSX Gains
The PSX’s gains were led by strong performances from Fauji Fertilizer Company (FFC), Engro Corporation (ENGROH), Hub Power Company (HUBC), TRG Pakistan (TRG), and Lucky Cement (LUCK). These five major stocks collectively contributed 541 points to the index’s rally.
Market Activity Remains Strong
Trading activity at the PSX remained robust, with 446 million shares changing hands. The total market turnover stood at Rs 29.1 billion, reflecting heightened investor participation. Among the most actively traded stocks, Pakistan International Bulk Terminal Limited (PIBTL) topped the volume charts with 59 million shares exchanged.
With IMF-backed financial stability measures gaining traction, investors remain hopeful that the PSX will sustain its bullish trend in the coming sessions. Market participants will now closely monitor the government’s next steps in executing the IMF-approved strategies, which could further shape the PSX’s trajectory in the near future.