Pakistan pays back $107.6 million to IMF


Pakistan has repaid an installment of $107.6 million to International Monetary Fund (IMF) as part of the principal amount against loan of $7.9 billion. The payment was made in accordance of Special Drawing Right (SDR) stood at 71.066 million. This was the third repayment of loans after installments of $394 million and $399 million were paid in February and May 2012 by the central bank. Therefore, more than $ 900 million has been paid to IMF so far in the current financial year 201-12, which is equal to 588 SDR. The foreign exchange reserves of the country have fallen sharply in the second half of the current financial year mainly on the payment of loans, high imports bill and negligible inflows of foreign earnings through exports and foreign direct investment. It declined to by $82 million to $14.964 billion during the week ended on June 21 against $15.046 billion a week earlier. The liquid foreign exchange reserves have declined by a massive $3.26 billion in the current fiscal year 2011-12 as the reserves reached a record level of $18.31 billion by end the of previous financial year. The depleting reserves have impacted negatively on the rupee value, which constantly fell against dollar in interbank and open market, crossing the level of 94 and 96 respectively in the recent weeks.