On Wednesday, the benchmark KSE-100 index increased by nearly 900 points during intraday trading, according to experts, who said that new purchasing was sparked by the International Monetary Fund (IMF) deal’s clarity.
The big buying was prompted by the intraday rupee rebound of 10 rupees in Pakistan. The interbank rate for the rupee was about Rs. 228 per USD.
Furthermore, the improvement is partly due to stronger economic fundamentals as the July 2022 import bill was $4.86 billion, down 38.31% month over month from the $7.88 billion in June. From $5.57 billion recorded in July 2021, imports decreased by 12.81 percent as compared to the same month the year before.
As a result, the trade deficit for the previous month decreased from $4.96 billion to $2.64 billion, representing a reduction of 46.77 percent month over month.
“The government’s efforts to cut imports have now finally begun showing benefits, and the administration is determined to work on making the economic crisis less,” said Miftah Ismail, the federal minister of finance and revenue, on Monday.
The same day, in an interview, he stated that Pakistan sees a way out of its current economic crisis without going into default, thanks to progress on a stalled International Monetary Fund (IMF) loan as well as spending reductions. He also hinted at upcoming stability in the interview.
To read our blog on “The KSE-100 index increased by 0.2%,” click here.
