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Myth says Violation of the IMF agreement led to a surge in dollar rate

Minister of Finance Miftah Ismail held the previous meeting led by PTI. government responsible for in current economic crisis in country, saying that former prime minister Imran Khan regime’s “imperfect agreement” with The International Monetary Fund (IMF) has led to rise in inflation and depreciation of rupee against US dollar.

“If we get out of clutch of agreement signed by Imran Khan with IMF, only then rate of dollar will come down. rebirth economy that imran khan left not an easy task,” he said. in statement on Friday.

He added that the subsidy on petroleum products announced PTI government put financial pressure on in economy.

Fuel subsidies this month were estimated at 120 billion rupees. minister said, adding that no government can bear the burden of so big amount of subsidies. If a government does not have money and he still gives a subsidy, then he has to borrow more added.

Pressure on the rupee is rising due to rising interest rates and Imran Khan government loan loans worth 20,000 billion rupees which is the largest ever amount in countries historyMiftah said.

In this regard, debtPML-N led by government got under heavy financial pressure and foreign exchange reserves left previous government just enough to pay for just a few days of import account, added.

Mifta said that under the leadership of PTI government violated the terms of agreement with the IMF that put the program on Keep.

“We must extend the agreement with the IMF. Imran created problems in connections with all countries including China and Saudi Arabia,” he said. added.

The Pakistani rupee continues its steep decline against United States dollar on Friday, for fifth working day in a row declined by 0.64% (Rs. 1.23) to new all-time low, reaching Rs 193 against U.S. dollar in inter-bank market.

The national currency closed at Rs 191.77. against in global currencies a day earlier, according to the State Bank of Pakistan (SBP).

latest recorded depreciation was followed by a central bank report on On Thursday, the country’s foreign exchange reserves dwindled to a 22-month low of $10.3 billion.

Depleting reserves continue to weaken the country’s balance sheet. of payouts as resultPakistan ability import and repay foreign debt signed a contract during past several months. $10.3 billion reserve. reduced the country’s import coverage is less than two months compared to the usual three-month import coverage.

Pakistan scheduled to begin negotiation with International Monetary Fund (IMF) on May 18 in Doha as a country options to avoid insolvency was limited after he could not immediately receive any large financial support of three friendly countries.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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