Pakistan

COAS appeals US to help expedite Pakistan-IMF deal

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Web Desk

4 years ago

COAS appeals US to help expedite Pakistan-IMF deal. Chief of Army Staff General Qamar Javed Bajwa has appealed to the United States to help Islamabad secure an early dispersal of $1.2 billion in funds under an International Monetary Fund loan programme.

According to a foreign media outlet report, General Qamar Javed Bajwa telephoned US Deputy Secretary of State Wendy Sherman and appealed to her to expedite the $1.2bn dispersal by the IMF.

It is pertinent to mention that Pakistan and the IMF reached a staff-level agreement over the release of the funds to support the country’s fragile economy. The staff-level agreement will pave way for a $1.2 billion disbursement, which is expected in August.

Pakistan is expected to receive $1.2 billion from the International Monetary Fund, which may help alleviate strain on the country’s currency and bonds, according to Fitch Ratings and Moody’s Investor Service, Bloomberg reported on Wednesday.

“We assume IMF board approval of Pakistan’s new staff-level agreement,” said Krisjanis Krustins, a Hong Kong-based Fitch director. “This will unlock significant additional financing from the IMF and other multilateral and bilateral sources, as well as provide a significant boost to market confidence.”

Pakistan’s rupee has fallen more than its peers in frontier markets such as dong and togrog.

Pakistan’s currency and bonds have taken a beating this month, as investors are concerned that political turmoil will delay IMF support for the country. The nation is trying hard to prevent fears it will follow Sri Lanka into a default this year, with the government working to secure billions of dollars from the Washington-based lender and countries like China and Saudi Arabia.

Web Desk