The Pakistan Stock Exchange (PSX) experienced a significant surge on March 26, 2025, with the benchmark KSE-100 Index climbing 1,189.22 points to reach an intraday high of 118,220.88. This 1.36% increase from the previous close was primarily driven by positive developments, including a staff-level agreement between Pakistan and the International Monetary Fund (IMF) and advancements in the Reko Diq mining project.

The IMF announced a staff-level agreement with Pakistan for a new 28-month Resilience and Sustainability Facility (RSF) arrangement and completed the first review of the 37-month Extended Fund Facility (EFF). Upon approval by the IMF’s executive board, Pakistan is set to receive an immediate $1 billion tranche, bringing total disbursements to $2 billion. This agreement aims to address climate-related vulnerabilities and restore macroeconomic stability.

Additionally, the Reko Diq project contributed to the bullish market sentiment. The Oil and Gas Development Company Limited (OGDCL) announced the completion of an updated feasibility study, revealing a 37-year mine life and a $5.6 billion investment plan for Phase 1, expected to commence in 2028. The project is projected to produce approximately 13.1 million tonnes of copper and 17.9 million ounces of gold over its lifespan.

These developments have bolstered investor confidence, leading to a notable uptick in the stock market. Analysts attribute the surge to the IMF agreement and the positive outlook of the Reko Diq project, reflecting optimism about Pakistan’s economic trajectory.