IMF loan swells by 22 per cent

Attention: open in a new window. PDFPrintE-mail

ISLAMABAD - The continuous depreciation of rupee against US dollar has raised the International Monetary Fund (IMF) loan by 20 to 22 per cent, say sources. The government has so far paid back a total of $2.52 billion to IMF from the foreign currency reserves held by the State Bank of Pakistan (SBP).

Finance Ministry official told that at a time when country entered in a Stand-by Arrangement (SBA) facility with the IMF in November 2008 dollar valued about Rs79, which has, by now, jumped to near Rs 100. The official said the country’s foreign exchange reserves will also continue to face pressure due to re-payment of IMF loans in the next more than three years as Pakistan is likely to go to the International Monetary Fund in fresh loan in current fiscal year 2012-13 to seek loan for the retirement of IMF’s Stand-by Arrangement (SBA) facility.

Pakistan will repay its obtained $7.6 billion to the IMF till the end of fiscal year 2014-15. The $11.3 billion SBA program had expired on September 30, 2011 and the last two trenches of $3.7 billion could not be paid to Pakistan by IMF following Islamabad’s failure to pursue key reforms as well as the emergence of the revenue figures fiasco.

Pakistan had enter into a $11.3 billion programme in 2008 with IMF and got disbursements of about $7.6 billion, but failed to get the remaining $3.7 billion due to slippages in performance criteria, leading to suspension of the programme in May 2010 and was ended unsuccessfully on September 30,2011.


Courtesy: The Nation

Forex open Market rates & comments Archive

Login Form