The Pakistan Stock Exchange (PSX) extended its bullish momentum on Tuesday, driven by investor optimism surrounding the upcoming federal budget, expectations of an extended International Monetary Fund (IMF) loan program, and strong economic indicators.
The benchmark KSE-100 Index surged by 1,559.5 points (1.36%) to hit an intraday high of 115,889.60, while the session’s low was recorded at 114,178.55. Investors focused on value stocks across key sectors, anticipating fiscal incentives for the construction industry in the forthcoming budget.
Finance Minister Muhammad Aurangzeb’s recent statements on economic reforms and industry support further bolstered market sentiment. Ahsan Mehanti, Managing Director of Arif Habib Commodities, attributed the rally to positive expectations regarding construction sector incentives, improved economic indicators—including remittances, inflation, and foreign exchange reserves—and hopes for IMF climate funding of $1 billion.
He also noted that rising global crude oil prices and discussions on the privatisation of state-owned enterprises (SOEs) contributed to the market’s bullish trend.
Meanwhile, the IMF’s technical team has begun discussions with Pakistani authorities on climate finance, including the potential introduction of a carbon levy in the upcoming budget. These talks are part of efforts to secure an additional $1.2 to $1.5 billion under the Resilience and Sustainability Facility (RSF), supplementing the existing $7 billion Extended Fund Facility (EFF).
The IMF review mission is scheduled to visit Islamabad on March 4 for 10 to 12 days of discussions, after which a report will be presented to the IMF Executive Board within four to six weeks, contingent on a successful staff-level agreement. If approved, Pakistan’s total IMF funding could increase to between $8.2 billion and $8.5 billion.
Finance Minister Aurangzeb reiterated the government’s commitment to tax base expansion, foreign exchange reserve growth, and business facilitation. Addressing journalists in Lahore, he highlighted rising remittance inflows—now involving 35 million senders—and growing investments in Roshan Digital Accounts (RDA).
Speaking separately in Faisalabad, he underscored Pakistan’s economic progress through structural reforms, citing a lower policy rate, single-digit inflation, and increasing tax revenues as signs of stability.
Despite early-session volatility, the PSX rebounded on mid-session value-hunting, with the KSE-100 Index closing at 114,330.10 on Monday, gaining 1,529.17 points (1.36%) after dipping to 111,857.34 earlier in the session.
