Pakistan’s stock exchanges started the week on the back of uncertainty over the country’s foreign exchange reserves amid uncertainty over when the ninth review of the International Monetary Fund (IMF) would be completed.
Pakistan’s foreign exchange reserves It stood at a historic low of $7.5 billion for the week ending Nov. 25 — enough to cover a month’s worth of imports.
Since then, the country paid off $1 billion in international bonds on Friday, three days before Monday’s deadline, and has also received $500 million from the Asian Infrastructure Investment Bank.
Saudi Arabia extends $3 billion in Pakistan’s foreign reserves
The benchmark KSE-100 index was down 546.10 points, or 1.3 percent, at 41,604 at 2:52 p.m.
Raza Jaffrey, head of research at Intermarket Securities, said, “There seems to be a lot of uncertainty in forex stocks, especially as the 9th IMF program review is still pending.”
Pakistan It entered into a $6 billion IMF program in 2019, its ninth review, and distant talks are currently underway between IMF officials and the government to release $1.18 billion.
“There is a delay in the IMF review, which is creating panic among investors. The finance minister’s comments on a private television channel also made negative headlines,” said Fahad Rauf, head of research at Ismail Iqbal Securities.
Finance Minister Ishaq Dar’s interview on a private television channel on Friday raised eyebrows when he said he was not concerned about the IMF team entering Pakistan for the ninth review, suggesting a possible setback to the ongoing talks.
It’s showing up. Geo newsAsked about the IMF team’s delayed request, the finance minister said: “I don’t care if they come. I don’t have to plead before them. I have to look at the case of Pakistan.
A Dawn A report last month indicated that Pakistan was behind on several performance criteria necessary for the completion of the review, with officials hinting that they had sought some redress from the financial institution.
Meanwhile, the IMF said in a statement last week that Pakistan’s flood recovery plan “is essential to support discussions and ongoing financial assistance.”
Pakistan was already in the throes of an economic crisis, facing decades-high inflation and dangerously low forex reserves, after the country was hit by floods that killed at least 1,700 people and caused massive damage, estimated by officials at around $30 billion. to agricultural land and infrastructure.