The Pakistani rupee reacting to the green signal from the IMF soared against the US dollar in the interbank market on Friday. AS per the information received from the forex dealers, the local currency appreciated by 31 paisas against the greenback and was currently being traded at Rs280.80. On Thursday, the Pakistani rupee had collected two paisas in its value against the US dollar, settling for the day at Rs281.11. Also yesterday, the International Monetary Fund executive board had approved a $700 million tranche for Pakistan under a $3 billion bailout, the finance ministry said. The IMF board completed the 1st review and allowed for an immediate disbursement of around $ 700 million bringing the total disbursements under the SBA to $ 1.9 billion, it added.

In June 2023, the IMF Executive Board approved the much-needed nine-month arrangement with Pakistan “to support its economic stabilisation programme”. The approval had allowed for an immediate disbursement of $1.2 billion, with the rest to be phased over the programme’s duration — subject to two quarterly reviews. The current IMF programme is expected to conclude in the second week of April. The initial tranche of $1.2 billion was released in July. In November 2023, a Staff-Level Agreement was reached between the IMF staff and Pakistani authorities regarding the first review under Pakistan’s SBA. This agreement was contingent upon approval by the IMF’s Executive Board.

Credit: Independent News Pakistan (INP)