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Pakistan on Friday paid three loan instalments worth $265 million to the International Monetary Fund (IMF). Despite facing a serious challenge of depleting forex reserves, the country paid a healthy payment to IMF without delay. Like previous practice, these repayments have been made from the reserves held by the State Bank.

Current payment included two instalments of Stand-By Arrangement (SBA), which calculated Special Drawing Rights (SDR) 167 million (equal to $252 million) and one payment of Extended Credit Facility (ECF) worth SDR 8.614 million (some $13 million). Cumulatively, the country paid some SDR 175.5 million or $265 million to IMF on account of three instalments of two different programmes.

Sources said the paid amount is alone an instalment of principle amount, while interest on the SBA is already being paid by the central bank on quarterly basis.

"This was the last payment to IMF for this fiscal year and now the next repayment is scheduled for July 2013. Some SDR 17.22 million is due on July 9 on account of ECF, while three SBA payments are scheduled in August," they said.

Followed by rising debt payments the country's foreign reserves are gradually depleting and fell to $11.344 billion as on June 21, 2013 compared to $15.236 billion on June 29, 2012. With current payment, another fall of $250 million in the country's forex reserve it expected. The SBP's reserves are likely to decline to $6 billion which presently stand at $6.256 billion.

Copyright Business Recorder, 2013


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