Karachi, March 18, 2025: The Pakistan Stock Exchange (PSX) continued its bullish momentum on Tuesday, with the benchmark KSE-100 Index surging 801.50 points (0.69%) to close at 117,001.09, up from 116,199.59 in the previous session. Investor confidence remained high amid optimism over circular debt resolution and progress in the International Monetary Fund (IMF) programme.
The index hit an intraday high of 117,202.09, while the lowest level recorded during the session was 116,490.82. The energy sector led the gains as investors responded positively to potential cash flow improvements and debt restructuring efforts.
According to Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, investor sentiment was driven by hopes for circular debt resolution, particularly in the energy sector, Improved cash flow prospects for power companies and continued progress in the IMF programme, easing economic concerns.
In a significant development, the IMF has allowed Pakistan to borrow Rs1.25 trillion ($4.5 billion) from domestic banks to tackle the power sector’s mounting circular debt, without adding to the country’s official public debt stock.
This decision follows policy discussions between Pakistan and the IMF, where Islamabad presented a six-year plan to manage the Rs2.4 trillion circular debt burdening the power sector.
The PSX opened the week on a strong note, continuing its bullish trend from the previous sessions. On Monday, the KSE-100 Index gained 663.42 points (0.57%), closing at 116,199.59.
With investor confidence growing, analysts anticipate that continued IMF negotiations and economic policy clarity will determine the market’s direction in the coming weeks.
