Pakistan‘s central bank has successfully achieved its forward book target of $4.2 billion set by the International Monetary Fund (IMF) to be paid by the end of September, according to Reuters.
Furthermore, the bank is in a favorable position to meet additional targets related to net international reserves and net domestic assets.
IMF also announced its plan to send a delegation to Pakistan, which is currently facing economic difficulties. This delegation will evaluate Pakistan’s performance during the first quarter of the current fiscal year.
After the evaluation, Pakistan will receive the next installment of $700 million from the IMF, pending approval by the IMF board.
The development comes after an earlier disbursement of $1.2 billion from the IMF in July, which was part of a 3$ billion bailout program spanning nine months.
The aim of this program is to support the Pakistani government’s efforts to stabilize its struggling economy.
While essentially serving as a bridge loan, this financial assistance has provided much-needed relief to Pakistan, which had been grappling with a severe balance of payments crisis and declining foreign exchange reserves.
“The foreign exchange buffers are improving, with both build-up in reserves and reduction in forward foreign exchange liabilities,” State Bank of Pakistan said in a statement.
The economic situation in Pakistan has been a matter of concern with continuous pressure on the vulnerable segments of the population due to surging inflation rates.
The country’s inflation rate experienced an upswing for the first time in four months, following the government’s decision to increase fuel prices as part of its commitment to fulfill IMF requirements under the ongoing USD 3 billion bailout program.
In September, consumer prices surged by 31.44% as compared to the previous year.

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