Karachi, May 25, 2012 (PPI-OT): Pakistan successfully managed to pay the 2nd loan installment of USD 394 mn to the International Monetary Fund (IMF) under its Standby Arrangement program (SBA) which was scheduled to be paid by 25th May, 2012.
According to Alfalah Securities Limited, the foreign exchange reserves would witness a decline due to this considerable outflow of funds while the also putting pressure on the exchange rate. On the flip side, higher remittances from overseas Pakistanis have provided much needed cushion to the external side which rose by 20.2% to USD 10.877 bn during 10M FY12. The third installment of around USD 110 mn is due to repaid on 29th June, 2012 followed by the next repayment of ~USD 400 mn on 24th August, 2012. These upcoming repayments remain a concern for the country’s economic stability amid rising current account deficit.