 will remain stable and won devalue more than 6-8 percent per year){kind=link}
The Finance Minister, Muhammad Aurangzeb, believes that the Pakistani Rupee (PKR) will stay steady and won’t decrease by more than 6-8 percent each year. Bloomberg reported this on Thursday.
He said that worries about the PKR losing value a lot are not important. He thinks that there won’t be a need for strong actions because the economy is doing well. He pointed out good signs like having lots of money in foreign reserves, the PKR staying steady, more money coming from people working abroad, and exports staying steady.
This week, Pakistan’s representative, Aurangzeb, and his economic team are attending the IMF-WB Spring meetings in Washington.
They’re currently in talks with lenders, and Pakistan expects a visit from an IMF team next month. They aim to finalize a loan agreement by late June or early July. Finance Minister Aurangzeb plans to ask for at least $6 billion as part of a longer loan program from the IMF.
The government coalition wants to boost important areas like farming and information technology to achieve over 4 percent growth. Pakistan is also working to tackle high prices and slow growth, with around $24 billion needed from outside sources.
It’s important to note that Pakistan has faced ongoing challenges, such as selling off government-owned companies, despite past attempts to meet IMF requirements.
In its discussions with the IMF, Pakistan aims to apply for a traditional IMF loan through what’s known as the extended fund facility. Additionally, it seeks funds from the IMF’s new Resilience and Sustainability Trust, designed to help low-income and vulnerable countries cope with external crises, like the floods that hit Pakistan in 2022.
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It also has to address about $24 billion in external financing needs for the fiscal year starting in July, which is roughly three times its reserves. Aurangzeb mentioned that Pakistan is in a relatively stable position to manage these payments