IMF’s liberal import plan may imperil stable rupee

The latest proposal of the International Monetary Fund (IMF) to further liberalise imports could destabilise rupee-dollar parity, said market sources. “The IMF wants to see up to 45 per cent increase in the imports in the second half of the current fiscal year which would surely put pressure on the exchange rate,” a well-informed senior banker told Dawn on Thursday. He said the IMF has drafted new conditions for the release of the last tranche of $1.2 billion under the $3bn Stand-By Arrangement in March. “I believe Pakistan will receive the remaining $1.2bn but will have to liberate the imports which surely put pressure on the exchange rate,” said the banker.