Rupee gains strength against USD after IMF loan approval

KARACHI: The Pakistani rupee gained Rs2.33 against the US dollar on Thursday following the $3 billion loan agreement approval by International Monetary Fund (IMF).

The local currency was being traded at Rs275.15 at 11: 45 am, according to data shared by the Exchange Companies Association of Pakistan.

The Pakistani rupee was currently trading at Rs 279 in the open market.

The greenback closed at Rs277.48 on Wednesday, according to State Bank of Pakistan (SBP) data.

The International Monetary Fund (IMF) Wednesday approved a $3 billion loan for Pakistan after signing the staff-level agreement last month. The loan was approved by the Executive Board of the International Monetary Fund (IMF).

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According to the official statement, the International Monetary Fund has directed to immediately disburse $1.2 billion while the remaining $1.8 billion will be scheduled in November and February in two instalments after reviewing the policies.

The IMF executive board said that Pakistan has to strictly follow the policies which were finalized in the IMF deal and the target set in the budget should also be implemented.

The statement further read that Pakistan needs to keep the exchange rate on market based and the country needs to adopt strict monetary policy.

PM thanks IMF MD

Prime Minister Shehbaz Sharif has thanked Managing Director (MD) of the International Monetary Fund Kristalina Georgieva after IMF executive board approved a $3 billion loan for Pakistan.

In a Twitter message, PM Shehbaz Sharif said, “The approval of Stand-by Agreement of $3 billion by the IMF’s Executive Board a little while ago is a major step forward in the government’s efforts to stabilise the economy and achieve macroeconomic stability.

“It bolsters Pakistan’s economic position to overcome immediate- to medium-term economic challenges, giving next government the fiscal space to chart the way forward,” said the premier.

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“This milestone, which was achieved against the heaviest of odds & against seemingly impossible deadline, could not have been possible without excellent team effort.”

“I would commend Finance Minister Ishaq Dar & his team at the Ministry of Finance for their hard work. My special thanks are also due to @KGeorgieva , MD of IMF and her team for their support & cooperation,” he concluded.