Islamabad: The International Monetary Fund (IMF) has imposed a restriction on State Bank to set the interbank exchange rate between 4 to 4.25 rupees.
According to the details, the IMF’s strict condition for the loan program has come to light. The documentation states that the exchange rate should be determined based on market conditions, and the State Bank should keep the interbank exchange rate 1.25% positive or negative compared to the open market.
The documents revealed that the IMF’s directive has bound the State Bank, with market sources stating that the interbank rate must stay between 4 to 4.25 rupees, maintaining a difference of 29 rupees compared to the open market exchange rate.
In the last week of May 2023, the open market exchange rate for the dollar reached 315 rupees, while in the interbank market, it was 292 rupees in the previous week.
Yesterday, the IMF had released details of the loan program, stating that the State Bank would be autonomous, and the market would determine the value of the dollar. The difference between the interbank and open market rates for the dollar during any business week should not exceed 100 paise.
The IMF had also warned that electricity and gas prices would increase further, taxes would be imposed on agriculture and real estate properties, and reductions in salary and pension expenditures would be necessary. However, no new tax amnesty scheme would be introduced.