After the IMF agreement, the recovery of the rupee is expected

Olivia Smith

After the agreement of three billion dollars between Pakistan and the International Monetary Fund (IMF), the value of the US dollar against the rupee is likely to fall.

It should be noted that the efforts of Prime Minister Shehbaz Sharif have paid off a few days ago, after continuous struggle, a new agreement has been reached with Pakistan and the International Monetary Fund. MF will give a new bailout package of three billion dollars to Pakistan during the next nine months. It is also expected to receive $4-5 billion from multilateral and bilateral lenders, which could help Islamabad strengthen the rupee against the dollar.

After the approval of the SBA program by the IMF Executive Board, the dollars received by Pakistan will improve the economic base as well as strengthen the rupee exchange rate with the possibility of appreciating by 8-10 percent.

See also  Madhumalati: Health and Vastu Miracles of the Color Changing Flower Rangoon Creeper

It should be noted that the federal government has hoped from the Gulf countries, Saudi Arabia had assured the IMF of additional deposits of 2 billion dollars after the restoration of the funds program. Pakistan and Saudi Arabia have exchanged drafts of the agreement but it needs to be converted into reality. It is important to mention here that both KSA and UAE had indicated to the IMF Executive Board last August 2022 to provide additional deposits of $2 billion and $1 billion respectively, but this could not be implemented.

In view of the possibility of the IMF’s Executive Board approving a new loan package at its scheduled meeting on July 12, 2023, Pakistan will have to implement commitments to bilateral friends to shore up its dwindling foreign exchange reserves at such a time. can be improved when the PDM coalition government completes its term in the second week of August 2023.

See also  The secrets revealed by the draft of 'Bohemian Rhapsody', the song that Freddie Mercury did not want to explain

Pakistan is expecting $700 million from the World Bank and the Asian Infrastructure Investment Bank (AIIB). It is expecting a $450 million RISE-II program loan from the World Bank and the Asian Infrastructure Investment Bank (AIIB) and $250 million from the AIIB, respectively.

Pakistan had paid about $5 billion to commercial banks including Chinese and Dubai banks, of which $2 billion had already been refinanced by Chinese banks. Now with the approval of the IMF loan, Pakistan will have to approach UAE commercial banks to provide short-term trade loans thus helping Islamabad overcome the dollar liquidity crisis.

A few days ago, Chairman Pakistan Forex Exchange Association Malik Bustan said that the black market of the US dollar has ended soon and the price of the US dollar is expected to drop from 20 rupees to 25 rupees.

See also  Aurelio F. Dapena, Navy Submarine Flotilla chief on the Titanic submersible: "The situation is desperate if they are still alive"

A month ago, Finance Minister Ishaq Dar said in an interview that there is a gap of 40 to 45 rupees between the rupee and the US dollar.

Leave a Comment