PSX stages 748-point rally on 'imminent IMF deal'.

The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index staged a rally of 748.97 points, up 1.79 per cent, on Tuesday as investor sentiment was buoyed by the possibility of an announcement revealing Pakistan's deal with the International Monetary Fund (IMF) for the release of $1 billion loan tranche.

Raza Jaffrey, head of research at Intermarket Securities, said that there was "rising exuberance" in the market over reports that a staff-level agreement with the Fund was imminent.

"If this happens, it can unlock funding from other sources, lift foreign exchange reserves and help the rupee recover some ground. The stock market appears to be anticipating this chain of events," he told Dawn.com.

Ahsan Mehanti of the Arif Habib Corporation said stocks showed "sharp recovery" on the finance minister hinting at the resumption of the IMF bailout programme within a day or two.

On Monday, Finance Minister Miftah Ismail had expressed hope that an agreement with the IMF for the revival of the Extended Fund Facility (EFF) would be reached "within one or two days".

Reporters had also asked him whether the Fund was opposed to the government's decision to increase the salaries of employees by 15pc and tax exemption for those earning less than Rs1.2 million annually.

"The IMF has nothing to do with salaries as long as we have the money," he had said, adding that the government will "protect" those earning less than Rs1.2m annually.

Pakistan signed a 39-month, $6...