US dollar halts Pakistani rupee’s onslaught

By: AFP
Published: 11:43 AM, 8 Feb, 2022
US dollar halts Pakistani rupee’s onslaught
Caption: File photo.
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The rate of US dollar which was galloping high rapidly before the release of IMF’s erstwhile stalled $1 billion tranche but stopped after the loan programme was revived a few days back has once again halted the Pakistani rupee’s onslaught, reported 24NewsHD TV channel. 

After losing value against an emboldened rupee last week, the dollar gained three paisas on Tuesday as the greenback was closed at Rs174.47 on Monday and it’s exchange rate was Rs174.50 today in the interbank trading. 

The International Monetary Fund's Executive Board on Feb 2 approved the 6th tranche for Pakistan. The IMF Board met in Washington to take up Pakistan’s request for the completion of the sixth review and releaseof a $1 billion tranche under the Extended Fund Facility (EFF).

In order to meet IMF condition, the government had successfully managed to get the State Bank (Amendment) Bill, 2021, cleared from the Upper House of Parliament - which was the last stumbling block in reviving the stalled programme.

The conditions which the government has to meet include complete implementation of the FATF action plan and establish a system of disclosure of assets on a priority basis.

The IMF urged Pakistan that the assets of top government officials including ministers should be disclosed. It also said that the use of prize bonds should be reduced as they are being used for tax evasion and illegal activities.

Pakistan should investigate and punish the leaders of terrorist groups, The IMF advised adding that the ‘Financial Intelligence Unit’ should also be made effective and corrected the flaws in the financial system.

The IMF urged Pakistan to privatize its two public banks and LNG Power plants. It also stressed reducing the rate of issuance of bank loans and controlling the amnesty scheme of the financial institutions for the construction sector.

It further stated that the Pakistani authorities should develop a working group strategy consisting of stakeholders of the matter of mortgaged property by the end of this month (February 2022) and also develop a legal, regulatory and policy framework for state-owned institutes.

Ownership of state-owned institutes and commercial operations should also be approved by the Pakistani parliament by amending the Ownership Policy Act till June 2022, the IMF stressed adding that the procedure of foreign investment and process of import and export at borders should be eased.

The IMF advised Pakistan to hold a timely audit of important state institutions including utility stores and review the performance of Pakistan's anti-corruption agencies with the help of independent experts. The IMF also urged that the Anti-money laundering laws should be used against corruption.

AFP

Agence France-Presse is an international news agency.