ISLAMABAD: To avoid the economic crisis and forestall the country from default, Pakistan is attempting to open the door of the International Monetary Fund (IMF). After the telephonic conversation with Managing Director Kristalina Georgieva, the possibilities of a tranche of the Fund have brightened.
The Expected meeting between the Pakistani and IMF delegations will be held after the international conference on ‘Climate Resilient in Pakistan’ in Geneva.
According to the spokespersons of lenders, the issues, and plans will be discussed in the meeting.
Meanwhile, Premier Shehbaz Sharif has also held a conversation with the MD of the Fund.
The economic situation of Pakistan is deteriorating day by day, Shehbaz Sharif-led coalition government is continuously claiming that Pakistan will complete the IMF programme.
Earlier, on Saturday the Prime Minister expressed his hope to complete the IMF program.
Meanwhile, former minister Hammad Azhar criticized the PDM’s government and expressed his concerns about the IMF deal.
In this situation, the aforementioned meeting can emerge as crutches for the economy and foreign reserves of Pakistan.
According to the data issued by the state bank of Pakistan (SBP), the foreign reserves have declined by $245 billion, which lowest level in eight years.
In this blur scenario, the tranche of the Fund can play a vital role to boost the reserves, and the value of the dollar can also decline after surging in liquidity.
However, in April, when the coalition government came into power, the foreign reserves of Pakistan stood at $10.5 billion, and now it has declined nearly $4.93 billion since nine months of the coalition government.
Hence, the foreign reserves of Pakistan stood at $17.6 billion during the same month of last year, which has declined by $12.10 by the end of the second quarter of the fiscal year 2022-2023.
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