The benchmark KSE-100 index of the Pakistan Stock Exchange opened in the green on Friday, continuing its momentum. last day And just hours after the government raised prices of petroleum products to comply with International Monetary Fund (IMF) conditions, prices jumped more than 800 points in the first hour of trading.
According to the PSX website, the index climbed to 43,422.88 at 10 am – over 2 per cent, the day’s all-time high – after gaining 880.29 points from the previous day’s close of 42,541.71.
The government’s move to end a month-old fuel price freeze initiated by the previous PTI government in February is being attributed to the rally in the stock market.
“The market is reacting to the government’s move to withdraw fuel subsidy. This reflects the government’s resolve to resolve issues in the economy quickly and will pave the way for the IMF program and other funding sources,” said Saad Hashmi, Executive Director, BMA Capital Management Reuters,
monday night government raised 30 per liter of all petroleum products – the highest increase in the prices of all petroleum products in one go – to reduce fuel subsidies that was a key point in talks with the IMF and the restoration of a $6 billion facility in April stalled from the beginning.
An official previously told dawn This was the first step towards persuading the IMF to release the next tranche of $1 billion at the earliest.
Announcing the price hike, Finance Minister Mifta Ismail expressed hope that now the exchange rate will improve, markets will stabilize, the economy will be balanced and investors will take positive decisions.
The Finance Minister said that with a jump of Rs 30, ex-depot prices of petrol by Rs 179.86 per liter, high-speed diesel (HSD) by Rs 174.15, kerosene by Rs 155.56 and light diesel oil (LDO) by Rs. 179.86 increased by Rs. 30 with a jump of Rs. 148.31 would be Rs. Still, the government will pay Rs 56.71 per liter on HSD, Rs 37.84 on LDO, Rs 21.83 on petrol and Rs 17.02 on kerosene.
more to follow