Karachi Stock Market Recovers on IMF Loan Optimism, Closes 808 Points Up

Trading remained strong, with over 185m shares changing hands

By DTD- On Apr 29, 2025

KARACHI– The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, clawing back heavy early losses, driven by optimism surrounding an upcoming IMF board meeting that is expected to approve a much-needed loan for Pakistan.

The PSX’s benchmark KSE-100 index surged by 808 points, or 0.71%, to close at 114,872.18, as investor sentiment improved amid growing expectations that the International Monetary Fund (IMF) will approve a $1.3 billion loan. This loan is part of a new 28-month support programme aimed at addressing Pakistan’s long-term economic challenges.

The market saw a rally throughout the session, reaching an intraday high of 115,040.58, close to its record levels, before closing at 114,872.18. The day’s low stood at 112,935.56. Trading volume also surged, with over 185 million shares exchanged, generating a total value of Rs22.38 billion.

Analysts attributed the market recovery to the announcement that the IMF Executive Board is set to meet on May 9 to discuss the $1.3 billion staff-level agreement (SLA) with Pakistan. The agreement would support Pakistan’s efforts to mitigate climate change and address ongoing economic challenges under the IMF’s 37-month bailout programme.

The IMF board’s approval would unlock approximately $1 billion under the Extended Fund Facility (EFF), bringing total disbursements under the programme to around $2 billion. This positive sentiment was further bolstered by recent meetings between Pakistan’s Finance Minister Muhammad Aurangzeb and IMF Managing Director Kristalina Georgieva, where Pakistan reaffirmed its commitment to necessary reforms.

Despite a rough start to the day, with the index plunging by 1,128 points due to early selling pressure, the market staged a robust comeback in the latter half of the session. Topline Securities attributed the recovery to easing margin-related selling and increased investor interest in quality stocks.

Stocks like Engro Corporation, Mari Petroleum, Systems Limited, MCB Bank, and Sui Northern Gas Pipelines were particularly influential, contributing around 760 points to the overall index gain.

The market turnover was healthy, with a total of 408 million shares traded, worth Rs29 billion. WorldCall Telecom led the volume chart, with 29 million shares changing hands.

The recovery in the PSX highlights growing optimism as Pakistan moves closer to securing financial support from the IMF, which will be crucial for the country’s economic stability.