ISLAMABAD, Sep 9(ABC): Despite the resumption of the International Monetary Fund (IMF) programme after a hiatus of seven months, Pakistan is still reeling under a severe dollar liquidity crunch as the cataclysmic floods have aggravated the macroeconomic fundamentals.
While several leaders and economists suggested that Pakistan should request the IMF for the provision of a Rapid Financing Instrument (RFI) or Natural Calamity Response-related funding facility, Islamabad has not yet made any fresh request on the expectations of a lukewarm response from the Washington-based international lender.
The IMF programme under $6.5 billion was restored in late August after it was stalled in February 2022 under the previous PTI-led regime when it provided unfunded fuel and electricity subsidies.
Pakistan’s currency has been under pressure since then; while economists expected the rupee-dollar parity to improve after the revival of the IMF programme the recent catastrophic floods dented the economy.
The exchange rate has gone under immense pressure in recent days whereby the rupee nosedived 9% against the US dollar,” top official sources said while talking to The News here on Friday.
“The situation has aggravated as demand for imports has gone up manifold but the country does not have enough dollars. “Without improving dollar injections, Pakistan’s macroeconomic vulnerabilities are not going anywhere,” the sources added.
