On the hope that the country will be able to secure the IMF tranche soon, the Pakistani rupee maintained its upward trajectory as the local unit gained 91 paisas against the US dollar on Friday. As per the data received from the money market, the US dollar slid by 91 paisas and was exchanged at Rs284 during early interbank trade. Yesterday, the Pakistani rupee dealt a heavy blow to the US dollar in the interbank and was appreciated by Rs1.71. For the last three trading sessions, the rupee is surging against the US dollar. The appreciation might be attributed to the good vibes coming from the International Monetary Fund.

Delivering a speech at the annual meeting of the IMF and the World Bank in Washington on Thursday, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva has expressed the hope that Pakistan will successfully complete the current loan programme and not face the same situation as Sri Lanka and Ghana. Georgieva said that they are working hard together with the Pakistani authorities, and the country should create such a political framework that avoids economic risks. “We want Pakistan to move towards sustainable economic development. We want assurance of financial support.”

Since early February, Pakistan has been negotiating with the IMF to revive the bailout programme to secure $1.1 billion tranche. The IMF requires friendly nations to fulfill their pledges to fund Pakistan before finalizing the $6.5 billion bailout programme which led to a delay in talks between Pakistan and the IMF to resume the programme.According to some reports, the United Arab Emirates (UAE) is likely to provide a written guarantee for $1 billion in financing this week as the matters have been finalized for the financing.

During IMF/World Bank Spring meetings via Zoom with IMF Deputy Managing Director Antoinette Moniso Sayeh, Federal Minister for Finance Ishaq Dar said that all prior actions for the 9th Review under the Extended Fund Facility (EFF) have already been completed and the government is fully committed to fulfilling its obligations as agreed with the IMF. Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, SAPM on Finance Mr. Tariq Bajwa, SAPM on Revenue Mr. Tariq Mehmood Pasha attended the meeting virtually from Islamabad.

Whereas the Ambassador of Pakistan to the USA Mr. Masood Ahmad Khan, Governor SBP Mr. Jamil Ahmad, Secretary of Finance, and Secretary EAD attended in person in Washington DC. On Wednesday, Jihad Azour, Director of IMF, Middle East and Central Asia Department (MCD) said that the Staff Level Agreement (SLA) will be signed soon followed by the IMF Board’s approval. Cash-strapped Pakistan is in dire need of funding to avoid default risk. Country’s foreign exchange reserves are drying up swiftly.

Credit: Independent News Pakistan-INP