The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) staged a rally of 748.97 points, up 1.79 per cent on Tuesday, as investor sentiment was buoyed by the prospect of an announcement, including with the International Monetary Fund (IMF). The Pakistan deal was exposed. Issuance of $1 billion loan tranche.
Raza Jafri, head of research at Intermarket Securities, said there was “growing excitement” in the market over reports that an employee-level agreement with the fund was imminent.
He said, “If this happens, it could unlock funds from other sources, lift forex reserves and help the rupee get some ground. The stock market is anticipating this chain of events. Is.” don.com,
Ahsan Mehnty of Arif Habib Corporation said the shares showed a “sharp correction” on the finance minister indicating resumption of the IMF bailout program within a day or two.
Finance Minister Mifta Ismail on Monday expressed hope An agreement with IMF for revival of Extended Funds Facility (EFF) will be done “within a day or two”.
Journalists had also asked him whether the fund was against a 15 per cent hike in salaries of government employees and tax exemption for those earning less than Rs 12 lakh annually.
“As long as we have the money, the IMF has nothing to do with salaries,” he said, adding that the government would “protect” those earning less than Rs 1.2 million a year.
Pakistan signed a 39-month, $6 billion EFF in July 2019, but the fund halted distribution of nearly $3bn after the previous government reneged on its commitments. Currently, Islamabad wants the IMF to not only resume disbursements, but also to expand the size and duration of the programme.
As of now, Pakistan and the IMF are yet to reach an employee-level agreement for the revival of the loan programme, leaving officials in a tight spot to bridge the gap and get the updated federal budget for fiscal year 2022. Abandoned – 23 passed by the National Assembly.
Finance ministry officials were hoping to conclude the staff-level agreement by Sunday (June 19) based on revenue and expenditure measures that would cover next year’s primary budget (the difference between revenue and expenditure, excluding interest payments). ) can be distributed in Rs. Excess.
However, IMF employees still have reservations of over Rs 9.5 trillion estimated by officials for the next financial year. Revenue measures in the budget are also insufficient to deliver slightly more than the Rs 7tr target as per IMF estimates.