JULYASIA BUSINESS OUTLOOK8PAKISTAN INDEX WITNESSES HIGHEST SURGE IN 15 YEARS POST IMF AGREEMENTINDIAN REFINERS TRANSACTING IN CHINESE YUAN FOR RUSSIAN OILAfter the government obtained a last-minute finance agreement from the International Monetary Fund (IMF), Pakistan's benchmark share index experienced its largest one-day gain in 15 years on Monday (Jul 3), rising 5.9 percentage on the first trading day.The nation obtained a $3 billion short-term financial package from the IMF on Friday, providing its teetering economy with a much-needed reprieve.According to a statement from Prime Minister Shehbaz Sharif, "Investors' confidence is sharply reviving as a result of the staff-level agreement with the IMF and $3 billion standby arrangement."According to Refinitiv statistics, the KSE 100 index increased 2,442.06 points to close at 43,894.7, marking its largest percentage increase since June 24, 2008, when it increased 8.6 percentage.Topline Securities remarked in a tweet that the increase was even more dramatic when expressed in terms of points. According to the statement, "Today's gain in the key KSE 100 Index will probably be the highest ever recorded by Pakistan Stock Exchange."Due to the commencement of the new fiscal year, there was no movement in the interbank market, and the Pakistani rupee held constant at approximately 286 against the US dollar for the day.Several automakers including Pakistan Suzuki Motor had announced prolonged plant closures in 2023, citing import restrictions.Honda Atlas Cars (Pakistan) and Pakistan Suzuki shares rose 7.5 percent to hit the upper limits of trading bands, while Indus Motor, which markets Toyota cars in the country, gained 4.2 per cent. As a result of Western sanctions, which require Moscow and its clients to find alternatives to the dollar for payment settlement, Indian refiners have started paying for part of their imports of oil from Russia in Chinese yuan, according to people with direct knowledge of the situation.India has emerged as the leading consumer of seaborne Russian oil as a result of Western sanctions imposed in response to Russia's invasion of Ukraine, even as it ponders how to pay for it in light of shifting penalties.The yuan is now playing a more significant role in Russia's financial system since Moscow has been cut off from the dollar and euro banking networks by international financial institutions. The U.S. dollar has long been the primary global oil currency, including for purchases by India.China has also shifted to the yuan for most of its energy imports from Russia, which overtook Saudi Arabia to become China's top crude supplier in the first quarter this year."Some refiners are paying in other currencies like yuan if banks are not willing to settle trade in dollars," said an Indian government source. NEWSROOM
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