IMF gets in writing assurance
ISLAMABAD: Pakistan’s major political parties, namely the Pakistan Muslim League – Nawaz (PML-N), Pakistan Peoples Party (PPP), and Pakistan Tehreek-e-Insaf (PTI), have come together and provided written assurances to support the smooth implementation of a crucial $3 billion bailout.
This approach of the parties has been well-received by the lending institution. The IMF expressed satisfaction with the assurances received, especially considering the upcoming general elections.
The written assurances of the political parties highlight their commitment to adhere to the terms and conditions of the IMF loan agreement.
IMF gets assurance in writing from political parties for its stand-by arrange for Pakistan.
This demonstrates a consensus among the PML-N, PTI, and People’s Party to uphold the objectives and policies of the loan program.
The significance of the loan agreement has been recognized by the IMF, which praised the support extended by the major political parties.
The IMF emphasized that the injection of $3 billion will play a vital role in securing external financing in the coming months.
This infusion of funds will provide Pakistan with the necessary resources to effectively address its economic challenges.
IMF’s condition derails rupee value
The IMF’s demand for an intervention-free foreign exchange market in Pakistan has led to a significant increase in the value of the US dollar even after the disbursement of the IMF loan.
As the IMF handed over $1.2 billion to Pakistan under the Stand-By Arrangement on July 13, the value of the rupee improved. However, it proved a temporary relief and the US dollar has, once again, hit the 290 rupees level in the open market trading on Wednesday morning.
Meanwhile, in inter-bank trading, the dollar-rupee exchange rate has increased to above 287 rupees. It fell to 272 rupees when the IMF board approved the loan on July 12 in Washington. However, in the following days, the dollar again resurged with full vigor and hit 290 in open market trading.
