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Pakistan, IMF finally reach staff-level agreement to revive $6bn funding programme

10:28 AM | 22 Nov, 2021
Pakistan, IMF finally reach staff-level agreement to revive $6bn funding programme

ISLAMABAD – The International Monetary Fund (IMF) and Pakistan finally reached a staff-level agreement under the $6 billion Extended Fund Facility (EFF).

Reports in local media said the global lender agreed to revive a $6 billion bailout package for the South Asian country – providing a major relief to the struggling economy.

The agreement involves the implementation of prior actions, notably on fiscal and institutional reforms, before approval from the IMF’s executive board, the statement reads.

Both sides evolve consensus on taking needed steps for completion of pending sixth review of the economy, laying the foundation for approval of new legislation by the Parliament. The agreement was finalized after prolonged talks spanning over six months.

The statement issued by IMF further stated "Completion of the review would make available about US$1,059 million, bringing total disbursements under the EFF to about US$3,027 million and helping unlock significant funding from bilateral and multilateral partners”.

The South Asian country is still only halfway to securing the $1 billion loan, as the IMF’s Executive Board approval is linked with the implementation of pre-conditions.

Islamabad will be required to launch a mini-budget to meet another pre-requisite on achieving primary surplus. PTI government will also have to get the State Bank of Pakistan amendment Bill 2021 passed from the Parliament.

IMF stated that the external pressures have started to emerge and inflation remains high, the weakest points that will now require tough actions on part of Pakistan.

“Notable achievements on the structural front include the finalization of the National Socio-Economic Registry (NSER) update, parliamentary adoption of the National Electric Power Regulatory Authority (NEPRA) Act Amendments, notification of all pending quarterly power tariff adjustments, and payment of the first tranche of outstanding arrears to independent power producers (IPPs) to unlock lower capacity payments fixed in renegotiated power purchase agreements (PPAs),” IMF statement further added.

Meanwhile, authorities also made progress in improving steps against money laundering and combating the financing of terrorism framework, although some additional time is needed to strengthen its effectiveness.

On the other hand, the Federal Board of Revenue’s tax revenue collection has been sturdy. At the same time, external pressures have started to emerge: a widening of the current account deficit and depreciation pressures on the exchange rate.

Officials also considering to introduce a package of fiscal measures targeting a small reduction of the primary deficit with respect to the last fiscal year.

Daily Pakistan Global Web Desk

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Pakistani rupee exchange rate to US dollar, Euro, Pound, Dirham, and Riyal - 26 Feb 2024

Pakistani currency remains stable against US dollar in the open market on February 26, 2024 (Monday).

US Dollar rate in Pakistan

In the open market, the US dollar was being quoted at 279.5 for buying and 282.55 for selling.

Euro currently stands at 302 for buying and 305 for selling while British Pound rate stands at 352.5 for buying, and 356 for selling.

UAE Dirham AED hovers at 76.1 whereas the Saudi Riyal saw slight increase, with new rates at 74.35.

Today’s currency exchange rates in Pakistan - 26 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 279.5 282.55
Euro EUR 302 305
UK Pound Sterling GBP 352.5 356
U.A.E Dirham AED 76.1 76.8
Saudi Riyal SAR 74.35 75.1
Australian Dollar AUD 181 183
Bahrain Dinar BHD 743.88 751.88
Canadian Dollar CAD 207 209
China Yuan CNY 38.89 39.29
Danish Krone DKK 40.38 40.78
Hong Kong Dollar HKD 35.76 36.11
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.1 2.18
Kuwaiti Dinar KWD 908.79 917.79
Malaysian Ringgit MYR 58.6 59.2
New Zealand Dollar NZD 171.68 173.68
Norwegians Krone NOK 26.43 26.73
Omani Riyal OMR 726.53 734.53
Qatari Riyal QAR 76.76 77.46
Singapore Dollar SGD 207 209
Swedish Korona SEK 26.53 26.83
Swiss Franc CHF 317.87 320.37
Thai Bhat THB 7.79 7.94

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