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Pakistan’s Finance Minister hopeful of new IMF loan agreement in May

10:31 AM | 20 Apr, 2024
Pakistan’s Finance Minister hopeful of new IMF loan agreement in May

ISLAMABAD – Finance Minister Muhammad Aurangzeb is optimistic Pakistan will be able to finalise a critical loan agreement with International Monetary Fund (IMF) next month.

Aurangzeb expressed his views during interaction with world media outlets in Washington, where he is attending the annual meetings of the IMF and the World Bank.

Speaking with wire service, Pakistan’s Finance chief said the incumbent government is seeking an extended loan from IMF to ensure macroeconomic stability and implement necessary structural reforms. He said IMF mission is expected in Islamabad around mid-May. Once the IMF loan is agreed upon, Pakistan plans to request additional financing from the Fund under the Resilience and Sustainability Trust.

Minister further mentioned that South Asian nation is aiming to improve its sovereign rating in the next fiscal year and is in talks with ratings agencies to prepare for a return to international debt markets.

Pakistan's current $3 billion arrangement with the IMF is set to expire in late April, and the government is seeking a larger loan for more stability and reforms.

During IMF and World Bank Spring Meetings, Aurangzeb met with IMF's Managing Director to discuss these matters. The size of the loan program has not been specified, but Pakistan is expected to seek at least $6 billion. The country has managed to accumulate foreign exchange reserves in recent months, aiming for $10 billion by end-June, which is roughly two months of import cover.

The debt situation is also improving, with most bilateral debts, including those with China, being rolled over. Pakistan hopes to return to international capital markets, possibly with a green bond, but more work is needed to achieve this.

During US visit, Aurangzeb also met with his Chinese counterpart in Washington, where he conveyed condolences for a recent terrorist attack and reaffirmed Pakistan's commitment to the safety of Chinese citizens.

The two sides discussed bilateral cooperation, including economic stability efforts, and highlighted the strong bond between the two countries. Pakistan is focusing on reform agendas to strengthen its economy, with the repayment of Chinese loans expected after the second phase of CPEC begins. Pakistan also expressed interest in launching a Panda Bond in the fiscal year 2025-26.

Daily Pakistan Global Web Desk

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Currency Rates in Pakistan Today - Pak Rupee to US Dollar, Euro, Dirham, Riyal 23 May 2024

Pakistani currency rates against US Dollar and other currencies on May 23, 2024 (Thursday) in open market.

USD to PKR rate today

US dollar was being quoted at 277.25 for buying and 280.25 for selling.

Euro moved down to 297 for buying and 300 for selling while British Pound rate is 349.5 for buying, and 353 for selling.

UAE Dirham AED was at 75.2 and Saudi Riyal came down to 73.45.

Today’s currency exchange rates in Pakistan - 23 May 2024

Source: Forex Association of Pakistan. (last update 08:00 AM)
Currency Symbol Buying Selling
US Dollar ‎USD 277.25 280.25
Euro EUR 297 300
UK Pound Sterling GBP 349.5 353
U.A.E Dirham AED 75.2 75.95
Saudi Riyal SAR 73.45 74.2
Australian Dollar AUD 183 184.8
Bahrain Dinar BHD 740.52 748.52
Canadian Dollar CAD 203 205
China Yuan CNY 38.51 38.91
Danish Krone DKK 40.52 40.92
Hong Kong Dollar HKD 35.68 36.03
Indian Rupee INR 3.34 3.45
Japanese Yen JPY 1.91 1.99
Kuwaiti Dinar KWD 903.3 912.3
Malaysian Ringgit MYR 59.39 59.99
New Zealand Dollar NZD 170.11 172.11
Norwegians Krone NOK 25.92 26.22
Omani Riyal OMR 723.46 731.46
Qatari Riyal ‎QAR 76.42 77.12
Singapore Dollar SGD 203 205
Swedish Korona SEK 26.02 26.32
Swiss Franc CHF 305.97 308.47
Thai Bhat THB 7.67 7.82

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