Bulls continued their charge at the Pakistan Stock Exchange (PSX) on Wednesday after the International Monetary Fund (IMF) and Pakistan reached a staff-level agreement (SLA), sending the KSE-100 Index soaring over 1,500 points in early trading.

At 9:35 am, the benchmark index was trading at 167,042.55—an increase of 1,566.53 points or 0.95%. The sharp rally came as investors celebrated Pakistan’s latest deal with the IMF, signaling renewed economic stability.

Buying momentum was particularly strong across automobile assemblers, cement, banking, energy exploration, oil marketing, and power generation sectors. Key stocks such as HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, MCB, MEBL, and UBL all traded in the green.

IMF agreement brings $1.2bln relief

In a significant development, Pakistan and the IMF reached a staff-level agreement on the second review of the 37-month Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF).

According to the IMF’s statement, the agreement—pending Executive Board approval—will grant Pakistan access to approximately $1 billion (SDR 760 million) under the EFF and $200 million (SDR 154 million) under the RSF. Together, total disbursements will reach nearly $3.3 billion under both programs.

The rally follows Tuesday’s massive rebound, when the KSE-100 Index jumped 7,032.60 points to close at 165,476.02—one of the sharpest single-day gains in PSX history. The renewed investor confidence reflects optimism over Pakistan’s economic direction, supported by IMF engagement and a stabilizing currency.

Global markets also show optimism

Globally, Asian stocks extended gains after dovish remarks from U.S. Federal Reserve Chair Jerome Powell, who hinted that the end of the Fed’s tightening cycle may be near.

Powell’s comments, combined with strong earnings from U.S. banks and an upgraded IMF 2025 global growth forecast, lifted investor sentiment. MSCI’s Asia-Pacific index (excluding Japan) rose 0.45%, while Japan’s Nikkei rebounded 0.8% after a steep fall in the prior session. U.S. Nasdaq and S&P 500 futures also edged up by 0.1% each.