February 03, 2023 (MLN): The Pakistan Rupee and bonds have declined following comments by Prime Minister Shahbaz Sharif on the tough conditions set by the International Monetary Fund (IMF) for the revival of the ninth tranche of $1.18 billion.
The Prime Minister stated that the country's economic conditions are challenging and the IMF conditions for the ninth tranche are beyond expectations.
As a result, the dollar rose by 1.8% to an all-time high of Rs.275 in the intraday market. Similarly, bonds due in April 2024 also slipped.
The Prime Minister stated that Pakistan will comply with all IMF conditions as there is no other option at this time.
To restart the IMF program, the government has already taken difficult decisions, including the removal of the cap on the dollar, which is one of the primary conditions of the IMF, and increased petrol and diesel prices by Rs.35.
To avoid a massive economic crisis in the country and to save its foreign exchange reserves, which currently stand at $3.08 billion, the country needs immediate financial assistance from the IMF and other countries.
