Karachi July 4 2023: Pakistan Rupee gain PKR 11.07 against dollar in interbank as country gets crucial bailout of USD 3 Billion from IMF.
Rupee trades at 274.92 against dollar as currency market open after six days due to Eid holidays.
In open market Rupee gains PKR 10 against dollar to trade at 277 against yesterday closing of 287.
On Friday, the IMF staff and the Pakistani authorities have reached a staff-level agreement for the disbursement of amount of USD 3 billion on policies to be supported by a Stand-By Arrangement (SBA).
Moody’s Investors Service and Fitch Ratings see lingering risks to Pakistan’s financing abilities as the country stares at a $25 billion debt repayment wall in the year starting July, more than the initial approval it secured recently for a $3 billion loan program.
“Pakistan will require significant additional financing besides the IMF disbursements to meet its debt maturities and finance an economic recovery,” said Krisjanis Krustins, director of sovereigns for APAC at Fitch. “While the IMF likely sought and received assurances for such financing, there is a risk that this could prove insufficient, particularly if current account deficits widen again.”