Buoyed Pakistani rupee outclasses US dollar
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The wait is over! The IMF board’s nod came and the Pakistani rupee which had faced months of hammering at the hands of foreign currencies finally recovered by Rs1.80 against the US dollar in the interbank market on Tuesday, reported 24NewsHD TV channel.
According to the State Bank of Pakistan, the local currency was closed at Rs220.12 gaining Rs1.80 in its value against the American currency thus appreciating by 0.82% when compared to its yesterday’s value.
In the open market, it was a freefall-like situation for US dollar where it lost Rs8.50 in value and ended the day at Rs222 down from Rs230.50
On Monday, the greenback closed the day at Rs221.92.
On Monday, the International Monetary Fund had revived Pakistan’s loan programme and its board approved the release of $1.17 billion.
Finance Minister Miftah Ismail announced the IMF board’s approval of the funds in a post on his Twitter account.
“Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranches of $1.17 billion. I want to thank Prime Minister @CMShehbaz for taking so many tough decisions and saving Pakistan from default. I congratulate the nation”.
Alhamdolillah the IMF Board has approved the revival of our EFF program. We should now be getting the 7th & 8th tranche of $1.17 billion. I want to thank the Prime Minister @CMShehbaz for taking so many tough decisions and saving Pakistan from default. I congratulate the nation.— Miftah Ismail (@MiftahIsmail) August 29, 2022
The IMF had also approved increasing the loan size to nearly $7 billion and extend it till June 2023.
I want to thank China, Saudi Arabia, Qatar & UAE for helping us fulfil the financing gap that revived our IMF program.— Miftah Ismail (@MiftahIsmail) August 29, 2022
I want to thank IMF, World Bank, ADB, AIIB & IDB for their support for Pakistan.
Thanks also to US, UK, EU, Turkey, Japan, Korea and others for the support.
Pakistan entered the programme with the IMF in 2019, however, Islamabad struggled to keep targets on track due to which only half the funds had been disbursed.
Islamabad received that last disbursement in February and the next tranche was to follow after review in March, but the PTI-led government slashed the petroleum prices by giving subsidies to the people which threw fiscal targets and the program off track.
After hectic efforts by the PDM government, Pakistan reached the staff-level agreement with the Fund in July after completing all prior conditions. The executive board Monday reviewed the progress and decided to resume the program and approved the seventh and eighth loan tranches.
Pakistan is now likely to receive a $1.17 billion loan tranche from Fund within six days.
Federal Minister for Planning and Development Ahsan Iqbal also announced the development on his Twitter handle. “Despite the malicious campaign of PTI, the IMF has approved the Pakistan programme”.
IMF approves Pakistan Programme despite PTI’s treacherous act!— Ahsan Iqbal (@betterpakistan) August 29, 2022
Reporter Ashraf Khan