Karachi: The KSE-100 Index surged to an unprecedented high this week, closing at 169,964.52 points, a 1.7 percent increase from the previous week. The boost in investor confidence follows the approval and disbursement of $1.2 billion to Pakistan by the International Monetary Fund (IMF) under the Extended Fund Facility and the Resilience and Sustainability Facility.

Investor sentiment was buoyed by the IMF’s report, which highlighted Pakistan’s progress, having met eight out of 13 structural benchmarks. The report also introduced 11 new benchmarks for future consideration. Despite a downward revision of GDP growth for fiscal year 2026 to 3.2 percent from 3.6 percent, the IMF improved its fiscal and external sector outlook for subsequent years.

In a related development, the State Bank of Pakistan (SBP) reported remittances of $3.2 billion for November 2025, marking a 9 percent year-on-year increase. This brings total remittances for the first five months of fiscal year 2026 to $16.1 billion, also a 9 percent increase compared to the previous year.

The government has also taken steps to support the industrial and agricultural sectors by approving a concessional electricity tariff of Rs22.98 per unit on additional consumption compared to a benchmark year. Additionally, the government cleared Rs659.6 billion of power circular debt, addressing part of the Rs1.225 trillion total.

In the latest Treasury bill auction, the government raised Rs982 billion, just shy of the Rs1,055 billion target, with yields remaining steady. Meanwhile, SBP’s foreign reserves saw a modest increase of $12 million, reaching $14.6 billion.

These developments indicate a cautiously optimistic economic outlook for Pakistan, supported by international financial aid and strategic government measures.