Pakistan’s benchmark share index briefly crossed the key 80,000 mark for the first time on Friday, climbing 1.5% to a record high, helped by continued optimism after the budget lifted hopes of getting an IMF bailout package to bolster the struggling economy.

According to the PSX website, the KSE 100 index was up 0.01% to close at 78,810.49 after hitting a record high of 80,059 earlier.

The market’s rally started after the government presented its annual budget last week, driven by expectations that the budget will strengthen the case for a new bailout from the International Monetary Fund.

The KSE 100 has risen 9.9%, or more than 7,000 points, since the government presented the budget on June 12, which was welcomed by investors as it avoided an anticipated increase in capital gains tax despite an ambitious tax revenue target.

On Tuesday, Fitch said that Pakistan’s ambitious budget targets strengthen the prospects for an IMF deal.

“Prospects of an IMF package, declining inflation and interest rates, and the conversion of funds from fixed income to equities, particularly in mutual funds, can explain the rally,” said Tahir Abbas, head of research at brokerage firm Arif Habib.

Pakistan’s central bank’s decision to cut its key rate by 150 basis points last week - its first rate cut in nearly four years, after inflation slowed to a 30-month low of 11.8% in May.