It is heartening to note that the International Monetary Fund (IMF), the lender of last resort, has finally reached a staff-level pact with Pakistan on a $3 billion stand-by arrangement. That the IMF has ended it protracted procrastination, enabling a cash-strapped country to secure much-needed lending is a fact.

The country now has fully averted a sovereign default threat that had become imminent in last few months owing to a variety of factors. This deal, which will be surely cleared by the IMF Executive Board in its meeting later this month, has certainly provided Pakistan some big relief.

Needless to say, the country has been battling an acute balance of payments crisis and falling foreign exchange reserves. The prime minister, finance minister, army chief and governor of State Bank of Pakistan (SBP) deserve commendations for this huge success.

This development that has incidentally taken place on a very auspicious day, the second day of Eidul Azha, will certainly give birth to a bullish sentiment in stock market, help strengthen rupee against USD and other major global currencies in both interbank and open markets, make a positive contribution towards overall efforts aimed at restoring investor confidence and replenish the foreign exchange reserves. IMF MD Kristalina Georgieva deserves a lot of praise for showing empathy to the plight of Pakistan.

Hina Mehtab Siddiqui

Karachi

Copyright Business Recorder, 2023