The Pakistan Stock Exchange extended its robust gains on Tuesday as the KSE-100 index smashed through the psychological barrier of 44,000 in the first session, but towards the end of the day profit-takign set in which eroded the the today's gains, reported 24NewsHD TV channel.

Pakistan's benchmark share index had scored its biggest single-day jump in 15 years on Monday, gaining 5.9% on the first trading session after the country secured a last-gasp funding deal from the International Monetary Fund (IMF).

The KSE-100 index closed up 2,442.06 points at 43,894.7, its biggest percentage gain since June 24, 2008, when it rose 8.6%.

The positive sentiment still prevailed in the market on Tuesday when share prices went up sharply by 612 points smashing through the psychological barrier of 44,000 in the early trading. However, profit-taking set in which brought down the index by 341 points which led the KSE-100 index to end the day at 43,557. Over 410 million shares were traded on Tuesday.

Pakistan had secured a $3 billion short-term financial package from the IMF on Friday, giving its economy some much-awaited respite as it teeters on the brink of default.

"Investors' confidence is sharply reviving as a result of the staff-level agreement with the IMF and $3 billion standby arrangement," Prime Minister Shehbaz Sharif said in a statement. He later told the cabinet the deal was a breathing space for the economy and that the road to sustained stability would require sacrifices from industrialists and other members of the elite. "We must convert this into an opportunity," he added.

Reporter Baseem Iftikhar