The Pakistan Stock Exchange (PSX) saw a strong rally as investors responded positively to reported progress in ongoing talks with the International Monetary Fund (IMF).

Market sentiment turned bullish early in the trading session, with the PSX's benchmark KSE-100 Index climbing by 713 points to reach a record level of 94,068 points, surpassing the 94,000-point threshold.

The stock market's upward trajectory started early in the day as the KSE-100 Index experienced a steady rise, gaining 574 points earlier in the session to reach 93,932 points. The surge reflects investor optimism around a potential IMF agreement, which could bring greater fiscal stability and support Pakistan’s economic reforms.

Also Read: FBR rules out mini-budget and GST on petroleum products in IMF talks

On Wednesday, the Federal Board of Revenue (FBR) told the IMF that no mini-budget would be introduced while affirming the government’s commitment to maintain the annual tax target of Rs12,970 billion.

Sources from the FBR also stated that the General Sales Tax (GST) will not be imposed on petroleum products, aligning with ongoing discussions with the Fund.

Sources also indicate that the IMF expressed satisfaction over Pakistan’s recent economic performance, particularly the increase in the tax-to-GDP ratio, which has risen from 8.8% to 10.3% -- a 1.5% improvement seen as a positive indicator of Pakistan's fiscal policies.

The IMF delegation reportedly viewed this increase as progress in stabilising Pakistan’s economic base.