Karachi March 18 2025: KSE-100, the main Pakistan equity index, gain more than 700 points as country nears favorable IMF deal.
Energy stocks, Oil and Gas Company, Pakistan Petroleum Limited and Pakistan State Oil gains 1.82%, 1.88% and 2.28% on one time clearance of circular debt.
The IMF has shared the draft of Memorandum of Economic and Financial Policies (MEFP) with the Pakistani authorities for evolving consensus which might pave the way for striking a staff level agreement under $7 billion Extended Fund Facility (EFF), reports The News.
The News also claimed that the International Monetary Fund (IMF) has authorised Pakistan to borrow Rs1.25 trillion ($4.5 billion) from domestic banks to help slash its ballooning circular debt without adding to its public debt stock, according to officials familiar with the matter.
“The freshly acquired debt will be allocated towards: i) refinancing of PkR683bn PHPL liabilities, ii) PkR280bn to nuclear plants, iii) PkR220bn to LNG based plans, and iv) PkR5bn to state-owned power plants” states Muhammad Ali an analyst at AKD Securities in its research report.
“Overall, watering down of power circular debt on account of payments towards RLNG-based power plants, positions PSO and SNGP as a key beneficiary” Ali Added.
