Over 1200 points jump seen in KSE-100 after positive Saudi news

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The Pakistan Stock Exchange registered gains on Wednesday, as its benchmark KSE-100 index surged by 1,227 points to reach 38942.53 points.

The index gained by 3.26 per cent as the market opened on Wednesday, a day after Saudi Arabia agreed to provide $3 billion to Pakistan as balance of payment support during Prime Minister Imran Khan’s visit to the kingdom. 

Photo: Geo News screengrab
 

The US dollar also fell by Rs1.21 against the rupee in the interbank market, and was trading at Rs132.70 in the early hours. 

On Tuesday, a statement from Prime Minister Imran Khan’s office said that Saudi Arabia will provide Pakistan with a deposit of $3 billion for a period of one year as “balance of payment support”.

“It was agreed that Saudi Arabia will place a deposit of USD 3 Billion for a period of one year as balance of payment support,” the statement said.

“It was also agreed that a one year deferred payment facility for import of oil, up to $3 billion, will be provided by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter.”

The development comes as PM Imran visited Riyadh where the prime minister launched a charm offensive targeting potential investors as Pakistan seeks to secure funds amid a yawning balance of payment crisis.

Apart from attending the Future Investment Initiative (FII) conference, the Pakistani premier also met with King Salman bin Abdul Aziz and Saudi Crown Prince Mohammad bin Salman to discuss matters of mutual interest.

According to the statement, the visit by the Pakistan premier to the kingdom has resulted in significant understandings between the two countries.

Far-reaching decisions on bilateral economic and financial cooperation were also agreed during the meetings with Saudi leadership, the statement said.

GEO News