PM: IMF standby agreements accelerates business community recovery.
Shehbaz claimed that the IMF agreement was the reason why investors’ confidence had returned, adding that “once again the country is on track to development and prosperity as envisioned by [PML-N] leader Nawaz Sharif.”
The astounding increase of 2,231 points at the Pakistan Stock Exchange on the first day of the week, according to the premier, was the result of the government’s “correct policies” and “consistent hard work.”
AlhamdoLilah—Mubrook
1. CPI Inflation clocks in@29%:
As per the data released by PBS, CPI inflation for Jun’23 clocked-in at 29.4% compared to 38% YoY for May’23.2. PSX added 2,334 points in KSE100 index by 1pm.
3. Pak Rupee vs Dollar in open Market @270/272.
— Ishaq Dar (@MIshaqDar50) July 3, 2023
The international money lender and Pakistan eventually struck a staff-level agreement on a $3 billion stand-by arrangement, which the country, which is on the verge of default, had long awaited.
Although primarily a bridging loan, it provides Pakistan, which is struggling with a severe balance of payments problem and declining foreign exchange reserves, with a great deal of relief.
Notably, the initiative is anticipated to make the necessary foreign currency accessible to resume imports, assist listed companies in progressively ramping up the output that has been temporarily shut down, and reactivate economic activity in the nation.
The new project has encouraged other donor organizations and friendly nations to provide Islamabad with more funding as they committed $9 billion during a summit in Geneva in January 2023.
Additionally, the influxes would increase foreign exchange reserves and enable the cash-strapped nation to get ready for the reopening of imports.
For the past two months, the market has been stuck in a band of 40,000 to 42,000 points due to the domestic economy’s partial shutdown.
The critically low foreign exchange reserves, which peaked at $3.5 billion, signaled a risk of default, which has now subsided in the short to medium term as the IMF plan has been revived.
Pakistan secures IMF lifeline
In the same way that we helped Pakistan overcome its energy crises, terrorism, and other issues between 2013 and 2018 and usher in economic development, he continued, “We are once again paving the way for Pakistan’s prosperity.”
Shehbaz emphasized the necessity of carrying on with the same task with ongoing devotion and attention.
We are going back to the period when Nawaz Sharif was in charge and we had successfully implemented CPEC, revived the economy, dropped the inflation rate to 4%, and increased the growth rate to 6.1% compared to the policy rate of 6.5 %, according to Shehbaz.
The prime minister declared that the administration intended to hasten growth in all other industries, including industry, IT, and agriculture.
God willing, he promised, “we will guard against inflation and give youth employment and business opportunities to help them become self-sufficient.”
