The Pakistan Stock Exchange (PSX) surged to an all-time high on Thursday, driven by positive market sentiment following the approval of the International Monetary Fund (IMF) loan program.

The market continued its upward momentum, with the index hitting a peak of 83,000 points at one stage. This marks the highest point the stock market has ever reached.

The benchmark KSE-100 Index recorded a sharp rise of 450 points, reaching a record level of 82,700 points during the trading session.

The IMF’s approval of the loan program has been seen as a major boost for the country’s financial health, contributing to a surge in trading activity and an increase of over 600 points in the stock market at the start of trading on Thursday. With an increase of 635 points in the KSE100 Index, the stock market reached a record of 82,900 points.

Market analysts attributed the bullish sentiment to expectations of increased liquidity and economic reforms supported by the IMF, which is expected to strengthen Pakistan’s financial position in the long run.

On Wednesday night, the IMF Executive Board approved a $7 billion loan for Pakistan under the Expanded Fund Facility (EFF), and immediately released nearly $1 billion to help Pakistan address its economic challenges and restore macroeconomic stability.

In a statement announcing the new loan program, which spans 37 months, the IMF noted that Pakistan’s economic growth rate has reached a modest 2.4% in the last fiscal year, and inflation fallen significantly to single digits.

This improvement was largely driven by activities in the agricultural sector and the implementation of adequate fiscal and monetary policies, which helped keep the country’s current account deficit under control. This allowed the foreign exchange reserves to improve again, while the decline in inflation reflects an improvement in the internal and external conditions.