ISLAMABAD: The Technical Memorandum of Understanding (TMU) of Stand By-Arrangement (SBA) has been amended to evaluate the external financing flows at actual average quarterly exchange rates, as per the International Monetary Fund (IMF) report “First review under the SBA”.

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The report notes that a large bilateral disbursement occurred in mid-July following a period of rupee appreciation, the actual average quarterly exchange rate overstated the financing generated in domestic currency terms, leading the QPC on the general government primary budget balance to be missed. TMU has been amended to evaluate external financing flows at actual exchange rates.

The Fund noted that the interim government has committed to reporting external financing flows and applicable exchange rates at a more granular levels

Copyright Business Recorder, 2024

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