ISLAMABAD (Eshfak Mughal):- The Executive Board of the International Monetary Fund (IMF) will meet on Aug 25 to approve or otherwise to revive the stalled loan agreement worth of $6 billion and immediate release of $1.17 billion tranche.

This was revealed by State Minister of Finance, Dr. Aisha Ghaus Pasha, during a recent meeting of the Senate Standing Committee on Finance.

While responding the queries of committee’s members, Dr. Aisha said that the new coalition government has reached a staff-level agreement with the IMF, which the previous government of PTI could not done. She said that the government had managed to fulfill the conditions set by the IMF. She said, hopefully, the Board will approve the revival of the loan program which is stalled during PTI government on non-compliance.

The minister said that the schedule of the IMF Board meeting has been finalized and the Board will meet on 25 August to take final decision on approve or otherwise to staff level agreement which was signed last couple of weeks.

If IMF Board decides to revive the stalled loan program of Pakistan, then the International lending agency will provide $1.17 billion to Pakistan under 7th and 08 Reviews.

The PTI Senator Mohsin Aziz slammed the Prime Minister Shehbaz Government for the economic meltdown, especially, the deprecation of the Pakistani rupee against USD. He said that the rupee stood at Rs. 240 against the US Dollar. Due to the prevailing situation, the import prices are being increased and many industries including Toyota are shutting down. He demanded that the Finance Minister should appear before the committee to explain the turmoil.

Dr. Aisha responded that the incumbent government has reduced the import bill to less than $5 billion for July, which was going to bring stability PKR. She added that in addition to lowering imports, the government was strengthening the exports. This would result in a higher inflow of dollars compared to the outflow and stop the freefall of the PKR.

She explained the reasons of currency fluctuations and said that the USD increased by 20 percent against all major currencies and PKR is not exceptional. The PKR depreciated by 12 percent against US Dollar during the period. She said that the value of the dollar was affected by the increase in policy rates in the USA, as well as the high demand for the USD.

Mohsin Aziz slammed the current government for the economic meltdown, especially, the deprecation of the Pakistani rupee. He said that the rupee stood at Rs. 240 against the dollar. This caused the import prices to rise, shutting down many industries such as Toyota. He demanded that the Finance Minister appear before the committee to explain the turmoil as the rupee continues to fall.

Dr. Aisha responded that the incumbent government had reduced the import bill to less than $5 billion for July, which was going to bring stability to the falling currency. She added that in addition to lowering imports, the government was strengthening the exports. This would result in a higher inflow of dollars compared to the outflow and stop the freefall of the rupee.

She explained that the price of the dollar had increased by 20 percent, and 12 percent of the decline in the value of the Pakistani rupee was caused by this hike. She said that the price of the dollar was affected by the increase in interest rates in the USA, as well as the high demand for the currency.

The minister also informed that the appointment of the Governor State Bank of Pakistan (SBP) will be done within a week.

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