UPDATE 2-Pakistani stocks close up almost 4 pct on FinMin hopes

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KARACHI, July 22 (Reuters) - Pakistani stocks closed up almost 4 percent on Tuesday due to institutional buying in anticipation that de facto finance minister Naveed Qamar will offer encouragement when he addresses the Karachi Stock Exchange later in the day, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index .KSE closed 3.96 percent, or 410.51 points, higher at 10,784.81 on turnover of 98.7 million shares.

"At least authorities have taken some interest and are showing their presence, which has boosted the morale of investors," said Shuja Rizvi, director of broking operations at Capital One Equities Ltd.

Qamar, the privatisation minister who has also held the finance portfolio since a coalition partner quit the cabinet in May, was due to start meeting the KSE board later on Tuesday.

Dealers said investors are expecting confirmation of a Saudi oil facility to take pressure off Pakistan's current account deficit and possibily some news about a proposed equity market stabilisation fund.

Saudi Arabia has agreed in principle to defer payments for crude oil sales to Pakistan, expected to be worth about $5.9 billion during current fiscal year, according to a Financial Times newspaper report earlier this month.

Earlier this month, the KSE said it was aiming to launch a 30 billion rupees market stabilisation fund following a precipitous fall in share prices.

The KSE has declined over 23 percent since the start of 2008 and over 31 percent since its life high in April.

Sentiment was lifted after the State Bank Governor Shamshad Akhtar made her first visit to the KSE on Monday, even though she reinforced expectations that interest rates will be increased, dealers said.

Akhtar said Pakistani banks have an aggregate capacity to invest 40 billion rupees ($565 million) in the stock market, if they wish to do so.

Among the most active companies, NIB Bank (NDIF.KA) rose 10.54 percent to 10.48 rupees, Oil and Gas Development Co Ltd (OGDC.KA) gained 4.99 percent to 119.39 rupees, while Arif Habib Securities (ARIF.KA) was up 5 percent at 136.71 rupees. (Reporting by Sahar Ahmed and Aftab Borka, editing by Simon Cameron-Moore)