The Pakistan Stock Exchange (PSX) witnessed a dramatic surge of 900 points in intraday trading on Wednesday, pushing the KSE-100 index to 121,374.58 by 1:31 pm. 

This significant jump, representing a 0.77% increase, comes ahead of the upcoming budget announcement on June 10 and is largely attributed to the positive news surrounding a newly approved financial assistance package from the Asian Development Bank (ADB).

The ADB has approved an $800 million program designed to enhance Pakistan’s fiscal sustainability and improve public financial management. This program includes a $300 million policy-based loan and a groundbreaking $500 million policy-based guarantee, expected to leverage an additional $1 billion in financing from commercial banks.

Analysts point to several factors driving the market’s upward trajectory.  Experts highlight the ADB loan as a key catalyst, alongside the attractive valuations resulting from a recent market correction. They also note a rise in institutional buying, contributing to increased market liquidity.