Hopes for the renewal of the International Monetary Fund’s (IMF) programme were reignited when the government accepted numerous criteria of the lender and amended the budget for the fiscal year 2023-24.
The country is keen to access the cash before the June 30 deadline for the Extended Fund Facility (EFF) – agreed upon in 2019 — expires, pushing Pakistan into a sovereign default.
If and when the IMF contract is revived, Pakistan will be one step closer to economic stability.
Furthermore, as a result of the continuous economic turbulence, the rupee fell to historic lows during the previous year, falling 28% to 286 against the dollar as of June 27, 2023, compared to 204.8 on June 30, 2022.
However, Pakistan’s leading currency dealer has forecast that if the IMF arrangement is reopened, the rupee will rebound dramatically.
Malik Bostan, head of the Exchange Companies Association of Pakistan (ECAP), stated in a video message to the media that he expected the IMF agreement to strengthen the rupee to 270 per dollar.
“Over the past few days, the Pakistani authorities have taken decisive measures to bring policies more in line with the economic reform programme,” he said in a statement released on Tuesday.
Pakistan had also hoped a day earlier to learn the IMF’s verdict on the programme within the next day or two.
