KARACHI: The Pakistan Stock Exchange staged a rally on Monday and the KSE-100 index gained close to 700 points in early hours as a host of positive triggers revived investor sentiment.
There is an expectation in the market that the International Monetary Fund (IMF) will send a draft of the Memorandum of Economic and Financial Policies (MEFP) today, which will indicate that the two parties have reached an agreement.
This drove optimism at the equity market. At 12:20, the KSE-100 index had climbed to 41,569.69 points after an intra-day gain of 517.9 points, or 1.26%.
The government wants to conclude an agreement with the monetary watchdog for the revival of the $6 billion program before the approval of Federal Budget 2022-23.
The market also jumped as investors brushed off negativity emerging from imposition of super tax on Friday.
Prime Minister Shehbaz Sharif announced on Friday a 10% poverty alleviation tax or super tax on large industries in a “bid to relieve the general public of tax pressures”.
The tax will be applicable on cement, steel, sugar, oil and gas, fertiliser, LNG, textile, banks, automobile, beverages, chemicals, tobacco and airline sectors.
“This tax is a one-time levy and it will only be applicable for fiscal year 2022-23,” Finance Minister Miftah Ismail said.