The International Monetary Fund (IMF)’s ratification of a $3 billion loan arrangement on Thursday, the Pakistani rupee appreciated by Rs2.33 against the US dollar.
Rupee gains strength against USD: The Exchange Companies Association of Pakistan published data showing that at 11:45 am, the local currency was trading at Rs275.15.
In the open market, the Pakistani rupee was now selling for Rs 279 per unit.
Data from the State Bank of Pakistan (SBP) show that the dollar ended the day at Rs277.48 on Wednesday.
After signing the staff-level agreement last month, the International Monetary Fund (IMF) on Wednesday approved a $3 billion loan for Pakistan. The International Monetary Fund (IMF) Executive Board gave its approval for the loan.
The official statement states that the International Monetary Fund has instructed immediate distribution of $1.2 billion, while they will distribute the remaining $1.8 billion in two installments between November and February after analyzing the policies.
The IMF executive board emphasized that Pakistan must closely adhere to the measures agreed upon in the IMF agreement and also meet the target outlined in the budget.
The statement went on to say that Pakistan must maintain a market-based exchange rate and implement rigorous monetary regulations.
PM thanks MD of IMF
After the IMF Executive Board approved a $3 billion loan for Pakistan, Prime Minister Shehbaz Sharif hailed Kristalina Georgieva, the IMF’s Managing Director (MD).
The ratification of the $3 billion Stand-by Agreement by the IMF’s Executive Board just a short time ago is a significant milestone in the government’s efforts to stabilise the economy and attain macroeconomic stability, according to Prime Minister Shehbaz Sharif in a message on Twitter.
According to the premier, “it strengthens Pakistan’s economic position to overcome short- to medium-term economic challenges, giving the next government the fiscal space to map out the way forward.”
Superb teamwork made the achievement of this milestone possible, despite overwhelming obstacles and a tight timeline.
I would want to thank Ishaq Dar, the finance minister, and his staff at the ministry of finance for their dedication. I would especially want to thank @KGeorgieva, MD of the IMF, and her staff for their help and collaboration, he said.