Around lunchtime on Tuesday, the value of the Pakistani rupee versus the US dollar unexpectedly dropped by Rs. 2.04 to Rs. 207.07 IMF deal postponement rumors.
In a move that would violate the terms of the International Monetary Fund (IMF) loan program, Punjab Chief Minister Hamza Shehbaz announced that free electricity would be made available for users of up to 100 units per month ahead of the July 22 local elections. This announcement caused concern and led to the surprise drop this morning.
There were rumors that the news would lead to another postponement in the $6 billion loan program, which would eventually impact the recovery trend that had been sustained for more than a week.
The International Monetary Fund’s (IMF) loan program for Pakistan was reportedly delayed, but Finance Minister Miftah Ismail on Monday denied this, stating there was “no truth” to the reports.
“I have been reading with some amusement all the tweets and stories about IMF program being postponed or delayed due to some anti-corruption law. There is no truth to it. The IMF program is on track,” in reaction to an article regarding the IMF program, he tweeted.
Last Tuesday, Prime Minister Shehbaz Sharif stated that Finance Minister Miftah Ismail had notified him that Pakistan may receive $2 billion from the IMF rather than $1 billion (IMF).
According to Finance Minister Miftah Ismail’s official Twitter account, Pakistan received the Memorandum of Economic and Financial Policies (MEFP) from the International Monetary Fund (IMF) for the seventh and eighth reviews on June 28.
The premier stated that the “real goal” was gaining self-reliance and continued, “Miftah Ismail in a message said that we will hopefully be receiving $2 billion instead of $1 billion from the IMF.”
“Early this morning, the Government of Pakistan has received a MEFP from the IMF for combined 7th and 8th reviews,” he wrote.
To read our blog on “Agreement with IMF has been secured, Finance Minister Miftah Ismail,” click here.
