Stocks surge nearly 1,000 points as IMF approves $1.2bn for Pakistan

Bullish sentiments were observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining nearly 1,000 points during the opening minutes of trading on Tuesday, as investors rejoice after the International Monetary Fund’s (IMF) Executive Board on Monday approved the disbursement of $1.2 billion for Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

At 9:35am, the benchmark index was hovering at 169,283.41, up 980.17 points, or 0.58%.

Analysts attributed the positivity to the IMF board clearance, which unlocks about $1.2 billion, roughly $1 billion under the EFF and $200 million through the RSF for the South Asian nation, bringing total disbursements under the two arrangements to about $3.3 billion.

Buying interest was seen in keen sectors, including cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including HUBCO, MARI, OGDC, POL, PPL, MCB, MEBL, NBP and UBL, traded in the green.

On Monday, PSX opened the week on a strong and confident note as equities posted robust gains across major indices, supported by improved investor sentiment and rising institutional interest. The benchmark KSE-100 Index surged by 1,217.67 points to close at 168,303.25.

Internationally, Asian stocks fell, and the dollar was steady on Tuesday as investors braced for a cut in US interest rates later this week, while the yen was calm after a powerful earthquake rocked Japan’s northeast region though the impact was limited.

Investor sentiment remained cautious ahead of a slew of central bank meetings, including a looming decision by the Reserve Bank of Australia on the day, as markets look for a clearer picture of the outlook for global interest rates.

The RBA, SNB and Bank of Canada are all expected to hold rates steady this week, while the Federal Reserve is widely expected to lower borrowing costs on Wednesday.

The spotlight, though, is on what comes after the Fed’s December rate cut, with bond investors positioning for a shallow US easing cycle. Many Wall Street banks predict fewer Fed interest rate cuts in 2026 on lingering inflation concerns and expectations of a more resilient US economy.

That has left stocks trading sideways.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.28% lower after a weak overnight session on Wall Street.

This is an intra-day update