Karachi: The KSE-100 index was unable to maintain its peak performance this week, having touched an all-time intraday high of 82,906, it concluded with a week-over-week decline of 782 points. The trading volume also saw a reduction, dropping 17% from the previous week to an average of 391 million shares.

According to JS Global, the Pakistani stock market experienced foreign net selling amounting to $12.5 million, continuing the trend of outflows. However, the financial landscape received a significant boost as the International Monetary Fund (IMF) Executive Board approved a $7 billion extended fund facility for Pakistan. This approval includes an immediate disbursement of $1.1 billion, following commendations from the IMF's Managing Director on the government’s reform efforts during a meeting with Prime Minister Shehbaz Shareef.

The economic outlook for Pakistan was further strengthened by substantial financing assurances from international allies such as China, Saudi Arabia, and the UAE, which collectively promised rollovers exceeding the required $12 billion for fiscal year 2025. The Asian Development Bank (ADB) also projected that the IMF-backed reforms would spur Pakistan's economic growth to reach 2.8% in FY25.

Additionally, the government is progressing in its negotiations with five Independent Power Producers (IPPs) to finalize an agreement aimed at reducing payment obligations. This negotiation is part of broader efforts to stabilize and improve Pakistan's fiscal management.

In another positive development, the State Bank of Pakistan's reserves maintained their 26-month high, reporting at $9.5 billion, reflecting a resilient financial stance amid ongoing economic challenges.