ISLAMABAD: A disagreement arose between the IMF and Pakistan on the issue of fixing the value of the rupee and the dollar.
The IMF had proposed a 16 percent depreciation of the rupee against the dollar at 328.4 rupees for the next fiscal year’s budget, but Pakistan disagreed with a 3.5 percent depreciation of the rupee at 295 rupees. Who is
It should be noted that the IMF’s estimates in this regard have been proved wrong in the past, the IMF estimated the dollar rate to be 300 rupees for June this month, but currently the dollar is trading at 278.10 rupees.
The Ministry of Planning says that the pressure on the rupee will continue during the next fiscal year due to external debt repayments. 2.5 billion dollars from the Asian Development Bank while it is expected to get 1.6 to 1.8 billion dollars from the Asian Development Bank.
The government believes that with the help of these loans and the IMF program, the government can control the value of the rupee, the government’s defense budget, foreign debt servicing, the cost of running Pakistani missions abroad and the government’s expenditure on public sector development programs. The issued rate is very important.
The government expects to receive $1.7 billion in funding for federal projects, however, any fluctuations in the dollar rate would make the entire budget unrealistic and require additional grants. However, the government has estimated the value of the dollar to go up to 290 rupees for the next financial year, while the average price of the dollar during the current financial year has been 285 and the dollar rate was 279 rupees in the interbank on Friday.
The Finance Minister plans to announce the budget on June 10, but due to the Prime Minister’s visit to China, the budget may be delayed from June 10. If Pakistan meets the IMF’s conditions, the staff level agreement can be reached by July, in time. The deal will help ease pressure on the currency.
