Pakistan shares hit fresh record on rate cut hopes, IMF talks

The index was trading at 75,013 points at 0531 GMT, up 0.7%, after hitting an intraday high of 75,115. It has surged 80% over the past year, and it is up 16.1% year-to-date after an IMF rescue last summer helped the government avert a debt default.

On Monday, the index closed at a record of 73,822, up 1%.

Mohammed Sohail, CEO of , said Wednesday's gains were fuelled by foreign fund buying.

On Tuesday, the MSCI index added a Pakistani bank, , to the MSCI frontier market index. Its shares rose 1.6% on Wednesday, outperforming the benchmark index.

"We estimate Pakistan's weight will also increase, thereby having the potential to attract more passive foreign funds," said Sohail.

The market is picking up steam due to an anticipated decline in inflation to 13.5% for May and expectations of a monetary easing cycle starting in June, said Shahid Habib, CEO of .

Investors were also optimism about discussions on a new International Monetary Fund financing program and the economic roadmap ahead, Habib said.

Pakistan last month completed a short-term, $3 billion , but the government of has stressed the need for a fresh, longer-term programme.

An IMF mission is in Pakistan to discuss the , policies, and reforms under a potential new programme.

Wall Street bank Citi expects Pakistan to reach a four-year agreement with the IMF worth up to $8 billion by end-July, and recommends going long on the country's 2027 international bond.