Ahmed Mukhtar Naqshbandi
ISLAMABAD: Pakistan’s dollar and rupee bonds declined after Prime Minister Shehbaz Sharif said on Friday that International Monetary Fund (IMF) is giving it a tough time in the ongoing talks to complete the ninth review of the $7 billion Extended Fund Facility.
The statement from the highest official in Pakistan immediately disturbed the exchange market, where US dollar’s value rose to a record high of Rs279, up by 2.21 per cent.
Bonds due in April indicated 0.3 cents lower at 56.94 cents on the greenback.
During a speech in Peshawar, PM said that IMF’s requests for releasing funds are beyond imagination, casting doubts on how the country can expect money to ease forty-eight-year-high inflations and supply shortages.
Pakistan is compelled to fulfill IMF’s conditions
Despite his ‘’irritation’, the premier said that Pakistan was compelled to fulfill IMF’s conditions.
The foreign currency reserves of Pakistan have shrunk to 3.09 billion dollars, equivalent to less than a month of imports.
Local commercial banks are refusing to issue Letters of Credit (LCs), leading to a standstill that could force businesses to shut down.
Last year’s destructive floods, which caused billions in damage, have added to the problems of an economy already being affected by political instability and fallout from the Russia-Ukraine war.
Pakistan’s borrowing costs are the highest in 24 years.
