Second tranche of IMF loan received, confirms SBP official

[Sohail Shuja]

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Money transferred: Second tranche of IMF loan received, confirms SBP official

By AFP
Published: December 24, 2013

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[FONT=georgia !important]KARACHI: Pakistan on Tuesday received $554 million dollars as a second tranche of its $6.7 billion bailout loan from the International Monetary Fund (IMF), an official confirmed on Tuesday.

[FONT=georgia !important]The Washington-based lender had approved the extended fund facility (EFF) in September to help the country achieve economic reforms, particularly in its troubled energy sector.

[FONT=georgia !important]The IMF made an initial payment of $540 million, and in November fund officials said during a monitoring visit that Pakistan was “broadly on track” with reforms. [FONT=georgia !important]“Pakistan received the second tranche from IMF under the ongoing EFF on December 23,” a spokesperson for the State Bank of Pakistan (central bank) said in a statement.

[FONT=georgia !important]The release of the instalment will also bolster the bank’s declining foreign exchange reserves. [/FONT][FONT=georgia !important]Cash-strapped Pakistan, plagued by a bloody homegrown Taliban insurgency, is battling to get its shaky economy back on track and solve a chronic energy crisis that cripples industry. [/FONT][FONT=georgia !important]Announcing the approval of the funds last Thursday, the IMF’s deputy managing director and acting chair Nemat Shafik had warned that Pakistan must continue its reforms for the economy to recover, in particular to improve tax collection.

Source: http://tribune.com.pk/story/650028/...-of-imf-loan-received-confirms-sbp-official/?[/FONT]

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[fnoman]

Great Job, now Dollar will go back up and will cross Rs.110 (y)

 

[Raaz]

Ishaq Dalar ki mojan hi mojan.

 

[Sohail Shuja]

Great Job, now Dollar will go back up and will cross Rs.110 (y)

Well, ideally it should decline. But you are right in a sense that if the Govt debt increases, it will raise the prices of the things in the country and therefore the price hike will inculcate a raise in the dollar value. Furthermore, we have an increased Govt lending, this time from the private banks and also the circular debt has again raised to more then 206 billion Rs. For this, the Govt will again try to further increase the money supply-- giving rise to further inflation. So, the dollar is supposed to cross 110 by the end of Jan 2014. On the other hand, the dollar had been on the lowest prices in the international markets this year but now the Fed reserves has given their decision that they will move their stimulus package as the economy of US has improved a lot. Therefore the dollar will rise in the international market as well.