IMF announces Pakistan visit as rupee falls to all-time low.

ISLAMABAD -- The International Monetary Fund (IMF) mission will visit Islamabad by the end of this month to continue discussions under the 9th Extended Fund Facility (EFF) review as Pakistan has agreed to accept all conditions on the subject.

'At the request of the authorities, an in-person Fund mission is scheduled to visit Islamabad on January 31 February 9,' IMF Resident Representative in Pakistan Esther Perez Ruiz told The Nation on Thursday.

She further said that the mission will focus on policies to restore domestic and external sustainability, including to strengthen the fiscal position with durable and high quality measures while supporting the vulnerable and those affected by the floods; restore the viability of the power sector and reverse the continued accumulation of circular debt; and re-establish the proper functioning of the FX market, allowing the exchange rate to clear the FX shortage.

Stronger policy efforts and reforms are critical to reduce the current elevated uncertainty that weighs on the outlook, strengthen Pakistan's resilience, and obtain financing support from official partners and the markets that is vital for Pakistan's sustainable development.The IMF team would visit Pakistan at the time when country's foreign exchange reserves have fallen to an alarming level. 'During the week ended on 20-Jan-2023, SBP's reserves decreased by US$ 923 million to US$ 3,678.4 million due to external debt repayments,' said State Bank of Pakistan.The total liquid foreign reserves held by the country stood at US$9.453 billion as of 20-Jan-2023. Foreign reserves held by the State Bank of Pakistan are $3,678 billion and net foreign reserves held by commercial banks are $5,774 billion. The reserves are declining due to the repayment against previous loans.

Meanwhile, an official of the ministry of finance informed that Pakistan would accept the four major demands made by the IMF to revive the progrmme, including increase in gas and electricity prices, market-based exchange rate and additional taxes to cover the fiscal deficit. The government would soon share the plan to control the circular debt of gas and power sectors, he added. On Thursday, before the IMF's statement, the rupee had undergone a severe hammering, falling nearly 10% in the inter-bank market as a 'free-floating' exchange rate apparently came into play. The rupee eventually closed at 255.43 against the US dollar, its worst level in history.

Prime Minister Shehbaz Sharif...