Money Market, Forex and General News - 03-07-2009
Saturday, July 4, 2009
MONEY MARKET
Market is flooded with liquidity, as a consequence the overnight closed at 1% p.a.
FOREX
The FX market was range bound with no major payments. The USD / PkR opened at levels of 81.55 & 81.60 and went as high as 81.62 and closed at 81.53 & 81.55
GENERAL NEWS
With Pakistan’s external liabilities rising to US$51bn and further sustained increase likely over the next 4-5 years, external debt sustainabilitywill certainly prove challenging in the medium term. This seems all the more obvious considering that the GoP is now negotiating for an additional US$4bn IMF financing facility – either SBA or PRGF – and at the same time mobilizing funds from bilateral donors though the FoDP platform. Already, servicing of external debt is eating heavily into fiscal resources with 13.4% of tax revenues budgeted for foreign debt servicing in FY10. This figure will likely rise as a result of servicing on the projected higher level of bilateral and IFI debt (excluding IMF), and sizable payments due on the IMF’s SBA facility during FY10-FY12.
A round of Pakistan-IMF meetings will initiate in Istanbul today. In this regard, the IMF has reportedly requested statistics on interest and amortization payments of major public sector enterprises, budgetary expenditures and revenue collection. In other news, the ADB and the IDB have jointly launched a US$500mn Islamic Investment Fund, mandated to invest in 12 countries including Pakistan
Source: NBP Treasury
Labels: Economy and Business, Pakistan Economy
posted @ 12:16 PM,
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