Pakistan repays IMF $3.2bn
KARACHI, Feb 26: Pakistan has paid over $3.2 billion to the IMF
since July 2012 putting pressure on already depleting foreign exchange reserves
as State Bank’s reserves fell around to $8.14 billion by the middle of this
month.“With repayment of current installment, Pakistan to-date has repaid to IMF SDR 2110 million equivalent $3232 million since July 2012,” said Syed Wasimuddin, Chief Spokesman of the State Bank.
Most of the repayment was for the Standby Agreement with the IMF, however: in this total repayment Extended Credit Facility and Emergency National Disaster Assistance are also included, said the spokesman.
The country’s external account is under extreme pressure since inflows were negligible during the year 2012 while outflows eroded the country’s reserves.
The serious fiscal mismanagement resulted in to a discontinuation of the Standby Agreement with the IMF.
The current government may find it difficult to negotiate another loan with the IMF as the widening fiscal gap, as high as 8.4 per cent in the fiscal year 2012, might not acceptable to IMF.
A number of reports which appeared in the media suggest that the IMF might impose harsher conditions if another IMF agreement is reached, which may not be acceptable as the government is going to face general elections within three months.
The State Bank said it has paid the 10th Installment under IMF/SBA facility amounting to SDR 258.4m equivalent $391.8m on Tuesday.
Next Installment under IMF/SBA facility will be due at end of May-2013, amounting to SDR 258.4m, said the spokesman.
“After the current repayment, remaining amount due under IMF/SBA until Sep-2015 is SDR 3239m,” said the SBP Spokesman.
If the SDR remains at current rate of about $1.515, the remaining amount to be paid to IMF amounts to $5bn.
Pakistan’s current account for the first seven months recorded a surplus of $62m but indicators suggest a negative trend as January’s current account stood at a deficit of $156m.
The remaining repayments to IMF and other foreign obligations would certainly hit the country’s external position with weak reserves and sharply declining foreign investments.
The foreign direct investment during the first seven months could hardly reach $662 million reflecting little hope for the future amid deteriorating law and order situation, prevailing energy crisis and volatile economic situation coupled with political uncertainty.
“While the energy crisis has hit the industry hard, the law and order situation in Karachi is creating serious threats for our orders particularly from European markets that are very cautious about timely availability of exportable products,” said textile exporter, Aamir Aziz.
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Pakistan
EXCHANGE FOR CURRENCY NOTES:
U.S.A 99.08
S.Arabia 26.42
U.K 150.71
Japan 1.0766
Euro 129.30
U.A.E 26.98
BULLION RATES IN RUPEES PER 10 GRAMS
KARACHI
Gold Tezabi (24-ct) Rs 52,028
Silver Tezabi Rs 942.85
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