Pakistan Will Ask for $10 Billion from IMF
The Pakistani government will ask for $10 billion from the International Monetary Fund, CNBC has learned.
Meetings about the country's problem with foreign reserves between IMF and government officials -- originally scheduled for Monday -- will now commence Tuesday in Dubai. The talks will llikely continue until the weekend, a source familiar with the situation said.
Suspected central bank intervention helped the Pakistani rupee recover to trade at 81.00 to the dollar on Monday, compared with Saturday's closing at 82.80/83.00, dealers said.
The rupee was quoted closing at 81.00/25 to the dollar, recovering 2.2 percent since Saturday's close.
Dealers said trade was thin amid uncertainty about the economic situation in regards to IMF assistance and foreign inflows.
"Everyone will remain cautious until there is some clarity on the economic front," said a currency dealer.
The central bank's foreign currency reserves represent about six weeks cover for import payments.
Rupee Under Pressure
The rupee sank to a record low of 84.40 to the dollar on Friday, at which point it stood 27 percent weaker than at the start of the year. As of Monday, the rupee has lost 24 percent this year.
Dealers said the rupee was under constant pressure because of import payments and a lack of inflows.
Analysts estimate Pakistan is in urgent need of at least $3 billion to $4 billion to help stabilize its economy.
-- Reuters contributed to this report