Karachi August 30 2022: Pakistan Rupee gains more than two rupee in the interbank to trade at 219.81 against the dollar after declining for five day as IMF approve release of $1.1 billion for Pakistan.
The Executive Board of the International Monetary Fund (IMF) completed today the combined seventh and eighth reviews of the Extended Arrangement under the Extended Fund Facility (EFF) for Pakistan. The Board’s decision allows for an immediate disbursement of SDR 894 million (about US$1.1 billion), bringing total purchases for budget support under the arrangement to about US$3.9 billion.
The EFF was approved by the Executive Board on July 3, 2019 for SDR 4,268 million (about US$6 billion at the time of approval, or 210 percent of quota). In order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board approved an extension of the EFF until end-June 2023, rephasing and augmentation of access by SDR 720 million that will bring the total access under the EFF to about US$6.5 billion.
Dollar in the open market falls Rupee 4 to 228 against the dollar.
Pakistan’s dollar bonds due this year climb to 94.4 after the nation secured a bailout from the International Monetary Fund to avert default, reported by Bloomberg.
Pakistan’s government in recent weeks has tied up at least $37 billion in international loans and investments pulling the country away from the kind of financial collapse seen in Sri Lanka, State Bank Deputy Governor says few days back in an interview.
With the completion of the upcoming IMF review and the additional assistance secured from friendly countries, FX reserves are projected to rise to exceed $16 billion during FY23, according to the IMF document.
