Karachi: The KSE-100 Index saw a significant rise yesterday, gaining 492 points to close at 78,848, with a robust trading volume of 967 million shares. Leading the charge in performance were PIBTL, SHFA, and KTML, while HABSM, NBP, and GADT faced declines. The activity was primarily concentrated in the technology, investment banks, and textile spinning sectors.

According to Taurus Securities Limited, the market’s upbeat performance coincides with various significant economic developments. Notably, the International Monetary Fund (IMF) has linked a bailout package to a $12 billion debt rollover for Pakistan. In parallel, Pakistan is negotiating a $1 billion commercial loan from a foreign bank, amidst no significant objections from the IMF to Punjab government’s power relief package.

The Economic Affairs Division (EAD) has also inked a loan agreement with the Exim Bank of South Korea, and China has expressed interest in initiating an RMB pilot project at the Gwadar Free Zone. Meanwhile, trade discrepancies with the Middle East have widened by 36 percent, reflecting ongoing economic challenges.

In government action, a list of 12 potential projects for co-financing was shared with the European Investment Bank, and the government is set to commence rightsizing with 33 State Owned Enterprises (SOEs) slated for closure in the first phase. Additionally, Pakistan’s circular debt has escalated to Rs2,897 billion, with central and provincial governments owing Rs2.56 trillion to DISCOs.

In a positive development for government revenue, Rs835 billion was raised, surpassing the target set for T-bills auction. Meanwhile, traders have signaled readiness to adopt a fixed tax, agreeing to pay Rs5,000 per month.

In other news, disruptions in oil supply are anticipated with the cancellation of 3 October cargoes and deferral of leading OMCs’ September cargo. Lastly, the sell-off of Pakistan International Airlines (PIA) is likely to proceed by next month, marking a significant step in the government’s privatization efforts.