The Pakistan Stock Exchange (PSX) commenced the week on a bullish trajectory, buoyed by positive developments in ongoing negotiations with the International Monetary Fund (IMF) and renewed optimism regarding the resolution of circular debt in the energy sector.

Market Performance:

  • KSE-100 Index Surge: The benchmark KSE-100 Index advanced by 663.43 points (0.57%), closing at 116,199.59. The session’s peak reached 116,597.89, with a low of 115,883.22.

Contributing Factors:

  1. Progress in IMF Negotiations: Significant strides have been made towards a staff-level agreement on the first review of Pakistan’s $7 billion program. An approved review could unlock a $1 billion tranche, crucial for stabilizing external finances.
  2. Circular Debt Reduction Efforts: The Ministry of Energy’s Power Division reported a reduction in circular debt by Rs9 billion in the first half of the fiscal year, decreasing from Rs2,393 billion in June 2024 to Rs2,384 billion by December 2024. Ongoing reforms and financial restructuring are credited for this decline.

Analyst Insights:

Sana Tawfik, Head of Research at Arif Habib Limited, attributes the market rally to the progress in IMF discussions and ongoing efforts to address circular debt.

Recent Trends:

The PSX concluded the previous week positively, with the KSE-100 index gaining 442 points on Friday, closing at 115,536.16. Over the week ending March 14, 2025, the index recorded a net gain of 1,137 points, reflecting a 1% week-on-week increase.