Thu, 29 Sep 2022

Pakistan's stock market gains as IMF prepares to release payment

Khalid Umar Malik
09 Aug 2022, 15:29 GMT+10

ABU DHABI, UAE - The UAE plans to invest $1 billion in Pakistani companies across multiple sectors, according to the state news agency (WAM), citing an official source in Abu Dhabi.

The UAE is eager to continue cooperation with Pakistan "in a variety of fields, including gas, energy infrastructure, renewable energy, and health care," according to the agency.

The move will likely boost investor confidence in the country, plagued by dwindling foreign exchange reserves and a depreciating rupee. However, as the IMF bailout program becomes clearer, sentiment has improved, and the stock market gained 670 points on Friday.

According to IMF and diplomatic sources, the IMF is expected to release the seventh and eighth tranches of a loan program for Pakistan in a few days.

According to the sources, the IMF has asked Pakistan to obtain assurances from Saudi Arabia and the UAE that they will provide a $4 billion loan to the country after the IMF releases its tranche.

According to a senior diplomatic source, "the Pakistanis received and conveyed the assurance from the two friendly countries." "As a result, we see no issue with the board's approval."

According to other sources, Pakistan has been warned: "not to allow the political situation to spiral out of control." The government was also cautioned that "street violence and protests by the opposition, or a government crackdown on PTI leaders, could jeopardize the deal."

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