What Pakistan to receive $1.17bn in installments in three to six weeks: IMF

The International Monetary Fund (IMF) said Pakistan will receive $1.17 billion within three to six weeks after the two reached a working level agreement earlier this week. At a press conference held by the IMF after the IMF announced the confirmation of the staff level agreement on Thursday, Gerry Rice of the IMF's communications department said that the last inspector had reached an agreement on the unification of the seventh and eighth programs. "That it will translate to about 1.17 million [sic] in Pakistan." As a reminder, Rice said the portion would bring the total cost, from the IMF to Pakistan of the ongoing program, to $4.2 billion. "We hope this can facilitate stabilize the economy and, among alternative things, facilitate to expand the social safety web to shield the foremost vulnerable; accelerate structural reforms; and facilitate stabilize Pakistan's economic scenario," he added. Responding to the interim payment period, the spokesman said that the final meeting could be held in three to six weeks, "that is roughly the comparison between the working level agreement and after the final agreement, which came from our board." Pakistan avoided the risk of follow-up after the IMF July 14 announced a working-level agreement to increase the rescue package and increase its size to $7 billion. However, the international community continued to pressure Islamabad to continue on the right track. Low-level talks with diplomatic channels have shown that the international community supports the IMF and does not give the government a chance to leave the talks without providing any financial assistance to Pakistan. The international lender added that Islamabad was ready "to take further steps". The IMF statement revealed that against the primary budget surplus target of Rs153 or 0.2% of GDP set in the revised new budget, the international lender has actually, given the target of 0.4%. KARACHI: The Pakistani currency came under fresh pressure, falling 0.55% (or Rs1.15) a day to a two-week low of Rs210.95 against the US dollar in banking markets on Friday after exchange reserves. The country's foreign exchange rate fell a day earlier. The rupee rose 0.14% (or Rs0.30) to Rs209.80 after Pakistan reached a working-level agreement with the International Monetary Fund (IMF) to revive a $6 billion loan program on Thursday. Although the much-awaited IMF deal failed to help the rupee recover early, the staff rate deal helped to freeze the high yield (rate of return) on government bonds for three months. 10-year 30-70 points in the past two days in the top markets. The rupee is back on the recovery track after the central bank on Thursday announced a fresh reduction of $99 million in foreign exchange reserves to $9.72 billion for the week ended July 7, 2022. There has been pressure on remittances, while the IMF will release $1.2 billion in loans sometime in August after its Executive Board gives final approval. The rupee may remain under pressure for some time until foreign inflows begin to enter the country. Meanwhile, however, ("Bonds") yields have started to decline since Pakistan reached the IMF staff agreement on July 13, 2022, the labor agreement, the global decline in oil prices, and the increase in liquidity in the domestic banking system led to the decline in bonds," he said. Data suggests that three-month T-bill yields fell 48 basis points in the past two days to 15% in Friday's market. It fell 33 basis points on the six-month T-bill to 15.38% while the yield fell 27 basis points to 15.59% on the 12-month T-bill. Also, the yields of three, five, and 10-year Investment Bonds ("PI BS") fell by 60-70 basis points to 13.33%, 12.80%, and 12.58% respectively in the last two days. Confirmation of IMF and other foreign flows, global commodity prices, and overall economic and political conditions will be key to the outlook for bond and treasury yields," said the bank's auction of Rs725 on Thursday, which is accepted. Government. Only 145 billion. It was also checked the yield that was auctioned yesterday (Thursday), and the government did not accept the 10-year contracts, which shows that the market is not ready to accept the high price of long-term bonds, as expected. With an average growth of 18% in FY23, the decline in petrol and diesel prices and the prospect of further decline in global oil prices may provide some relief.