Pakistan's benchmark share index gained more than 6 per cent at open on Monday in its first trading session after the crisis-stricken country <a href="https://www.thenationalnews.com/business/economy/2023/06/30/pakistan-reaches-staff-level-agreement-with-imf-for-3-billion/" target="_blank">secured funding</a> from the International Monetary Fund, with auto stocks rising amid hopes import restrictions may be eased. Trade was briefly halted after the index hit its upper circuit limit. <a href="https://www.thenationalnews.com/queryly-advanced-search/?query=Pakistan" target="_blank">Pakistan </a>secured a badly-needed $3 billion short-term financial package from the IMF on Friday, giving the South Asian economy a long-awaited respite as it teeters on the brink of default. "Today's gain in benchmark KSE 100 Index is likely to be the highest in the history of Pakistan Stock Exchange," Topline Securities tweeted. The index was up by 2,414 points to 43,867 at 11.30 am local time. In terms of points, the gain is on track to be its highest ever, and if the market sustains its current gains throughout the day, that would be its biggest single day gain since March 2009. The Pakistani rupee was little moved, trading at 286 against the US dollar. Among the key stocks to advance, car manufacturers rose by between 6 per cent and 7.5 per cent, as import restrictions are expected to be lifted with the new IMF deal. Several automakers, including Pakistan Suzuki Motor, had announced prolonged plant closures in 2023, citing import restrictions. Honda Atlas Cars (Pakistan) and Pakistan Suzuki shares rose by 7.5 per cent to hit upper circuits, while Indus Motor, which markets Toyota vehicles in the country, gained 6 per cent. "Auto sector stocks were trading at cheap valuations. With the import ban lifted and a $3 billion IMF deal secured, companies such as PSMC, INDU and HCAR will not face any issues in their respective supply chains," said Muhammad Iqbal Jawaid, an investment analyst at Arif Habib. "All the necessary parts for the assembly of vehicles will be available on time." The IMF's new nine-month standby arrangement was struck hours before the previous agreement expired, offering a relief to Pakistan's acute balance of payments crisis. Prime Minister Shehbaz Sharif said the agreement would put Pakistan "on the path of sustainable economic growth".
