Pakistan Stock Exchange’s benchmark index gained more than 700 points in the intraday trading as the country begins talks with the International Monetary Fund for the new bailout package.

According to the PSX website, the benchmark KSE-100 index gained 707.87 points, or 0.97 per cent, to stand at 73,793.37 at 12:12pm from the previous close of 73,085.50.

During intraday trade, the benchmark index breached the 74,000 barrier before dropping back below within an hour.

Last week, shares at the PSX gained 427 points to reach a new milestone of 73,000 points amid expectations of inflation falling faster than the expected rate.

The KSE-100 index gained 427.45 points, or 0.59 per cent, to stand at 73,085.5 points at the day’s close from the previous close of 72,658.05 on May 10.

“Based on our analysts estimates Pakistan current PE [price earning ratio] of 3.7x will linearly revert to its historical average of 6.93x over next 3 years of IMF program (Jul 2024 – Jul 2027), subject to successful implementation of the program and its conditionalities with respect to fiscal/monetary discipline and structural reforms,” Mohammed Sohail, CEO of the Topline Securities, said in a social media post.

Pakistan is seeking a bigger and larger programme to have economic stability, according to Finance Minister Muhammad Aurangzeb.

The government has expressed its intention to implement structural reforms in tax authority, energy sector, and state-owned enterprises.

“Our team believes that PE by Jun 2025 will rise to 4.6x, taking our index target for Jun 2025 to 106k. In line with this, our Index target for Dec 2024 is now revised up to 87k (earlier: 75k), providing a further return of 20%,” Sohail said.

The analyst at the PSX added that high leverage, pharma, consumer and circular debt affected companies/sectors would garner investors’ attention in the next 12 months due to expected monetary easing, deregulation of non-essential pharmaceutical prices, lower inflation and gradual addressal of recurring circular debt.