Pakistan evades default, revives market confidence: economists

KARACHI: Pakistan’s deal with the International Monetary Fund (IMF), has saved the country from default and revived stock market confidence, economists commented while talking to the ARY News.

“The bullish trend in market is expected to persist for at least 10 days. It will also boost value of the Rupee, attract investment, save the country from default and create space for a new government to tackle the crisis,” experts said in their comments.

“The deal with the IMF has been better than expectations,” Mohammad Suhail, an economic expert said. “It will also help the new government to tackle the crisis,” he added.

“A bullish trend could continue in the stock market for next 10 days,” Abid Sulehri said. “Things are returning to normal after agreement with the lender, which has also revived confidence of the investors,” he added.

“The IMF deal has created investors’ interest in buying, it will help the rupee to gain value. Pakistan’s rupee is expected to gain five to seven rupees in value against the US dollar,” another expert Samiullah Tariq commented.

Dr. Khaqan Najeeb has said that the country has moved away from the shadow of default. “Pakistan will also get stalled funds after the deal and it could likely to receive three billion dollars from the friendly countries,” he added.

The Pakistan Stock Market (PSX) entered in bullish mode gaining over 2,000 points on Monday, as investors’ confidence revived after the signing of a staff-level agreement between Pakistan and the International Monetary Fund (IMF).

The benchmark KSE-100 index of the Pakistan Stock Exchange rose by 2,307 points at 11:00 am today.

Last week, Pakistan signed $3 billion staff-level loan agreement with the IMF.