According to reports, Pakistani authorities will meet IMF to discuss the 7 th review in Doha next week on Wednesdays, 18 th May. The country is currently on Extended Fund Facility (EFF), trying to convince the IMF to release its next batch of loans to boost its foreign currency reserves.
Markets are keenly eyeing the matter because Pakistan’s progress with the IMF can revive investor confidence, stabilise foreign exchange reserves, and unlock funding from other global financial institutions. A further loan from IMF depends on meeting its conditions. The IMF’s pre-requisites for Pakistan include increasing petrol prices, electricity prices, and removing subsidies. He also warned that the Pakistani rupee would depreciate without the IMF’s programme even more.
Former finance minister Hafiz Pasha said that renewing talks with the IMF was the only way to get out of this economic crisis. Pakistan also failed to secure a bailout package from IMF, causing panic in the market. Delay in International Monetary Fund (IMF) Programme The trade deficit increased by 64.79% during the first 10 months of the current fiscal year (July 2021 – April 2022), bringing the total to 39.3 billion USD from 23.8 billion USD last year (July 2020 – April 2021). At the same time, foreign exchange reserves fell by 115 million USD. The surging trade deficit, debt, and current account deficit increased pressure on the foreign exchange reserves of the State Bank of Pakistan (SBP).Īccording to reports, the central bank said in April 2022 that its reserves fell by 59 million USD. Pakistani Rupee Feels the Weight of Baggageīesides political and economic uncertainty, heavy imports also weigh down the Pakistani rupee. Many market experts, traders, investors, and economists have mentioned possible reasons for this unprecedented surge in the US dollar. According to reports, during the last fiscal year (2021-22), the local currency depreciated by 32.53 PKR against USD and another 13.51 in the current year. The rupee’s downward trend began in May 2021 when it sold for more than 152 PKR against USD. Maintaining a persistent decline, it crossed the critical threshold of 190 PKR one day before. On Thursday, 12 th March 2022, it dropped to an all-time low of 191.75 PKR during intraday trading. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.įusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.The Pakistani rupee (PKR) continues its plunge against the US dollar amid the country’s prevalent economic and political instability. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.
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