An urgently needed bailout scheme will be discussed in Pakistan by a delegation from the IMF next week, as a foreign exchange crisis has all but stopped imports.
The South Asian country is in serious financial trouble, having to pay off interminable external loans, contend with growing inflation, and barely have enough money to cover imports for around three weeks.
In an attempt to resolve the impasse over the release of additional financial aid, the IMF announced in a statement late on Thursday that a review team would travel to Islamabad on Tuesday.
It happens just a few days after Islamabad gave in to pressure to lift an exchange cap to help rein in an out-of-control illegal market. The rupee fell to an all-time low versus the US dollar on Thursday as a result of its elimination.
Financial expert and CEO of Topline Securities Mohammad Sohail claimed that the administration has overcome a significant obstacle to obtaining the subsequent IMF infusion.
“Leaving the forex market to market forces was one of the biggest conditions of the IMF, which the government was defying in the past,” he told AFP.
Prime Minister Shehbaz Sharif said Friday he was hopeful of an agreement this month.
“Pakistan today stands at a crossroad where we are striving to save each penny,” he said at an event in the capital, adding that a priority list for imports has been set up.