ISLAMABAD: The executive board of the International Monetary Fund is set to approve a $3 billion standby arrangement for Pakistan on Wednesday.
According to Pakistani Standard Time (PST), the IMF can share the decision of the board with the Finance Ministry today evening.
After the IMF board’s approval, Pakistan is expected to receive $1.1 billion next tranche from the IMF next week.
The IMF has referred the SBA with Pakistan to the board after signing a staff-level agreement a few days ago.
Value of dollar declines
In the inter-bank and open market trading, the value of dollar has dropped to 277 rupees since Tuesday. Two good news _ $2 billion Saudi deposits and IMF’s board meeting today reversed the flight of the US dollar. Earlier, the US dollar-PKR exchange rate was hovering above 282 rupees in the inter-bank and 285 rupees in the open market operations.
The executive board of the IMF is holding a crucial meeting on Wednesday (July 12) in Washington to approve a $3 billion standby arrangement with Pakistan.
The IMF board is holding this meeting in the wake of the signing of a staff-level agreement between the IMF and Pakistan for the resumption of loans.
IMF accepts external financing plan of Pakistan
Meanwhile, the IMF has accepted the external financial plan submitted by the Pakistan government to unlock the IMF bailout program.
Last week, the federal government submitted a financing plan of $8 billion to the International Monetary Fund (IMF). The government submitted the plan ahead of the IMF board meeting on July 12.
Accordingly, China will provide financing up to $3.5 billion, underscoring China’s commitment to deepening strong bilateral relations in the economic, trade, and financial sectors.
China will rollover safe deposits of $2 billion, and reschedule $1.5bn of commercial banks. China’s support during the last few months when the country is in difficult economic circumstances shows China’s commitment to deepening the relations between both countries.
Meanwhile, Saudi Arabia and UAE will contribute $2 billion and $1 billion respectively. Additionally, the Asian Development Bank (ADB) and the World Bank will contribute $500 million each.
Furthermore, the government will obtain $3 billion through the IMF program, signed between the International Monetary Fund (IMF) and Pakistan on June 30.
