The trade activity at the money market remained dull and dreary as the US dollar saw a slight depreciation of 23 paisas in its value against the Pakistani rupee in the interbank trading on Friday, reported 24NewsHD TV channel.
According to the State Bank of Pakistan, the market registered a dreariness at the start of the trading activity as the US dollar lost 22 paisas in its value against the Pakistani rupee, which ended the day at Rs283.59.
On Thursday, the PKR went up by 0.03% in the interbank market and appreciated by six paisas ending the day at Rs283.82.
Pakistan is facing an acute shortage of foreign exchange reserves as the reserves held by the State Bank of Pakistan (SBP) decreased by $5.6 million $4.45 billion during the week ended on April 28, 2023, according to the data released by the central bank on Thursday.
On the other hand, the country's total reserves jumped by $18.9mn to $10.04bn.
The reserves held by commercial banks moved up by $24.5mn to $5.58bn.
Pakistan has less than a month's worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments.
According to Reuters, the International Monetary Fund is preparing to discuss Pakistan's budget plans for the coming financial year as part of a process to unlock a crucial financing injection for the cash-strapped nation, the IMF's country mission chief said.
An IMF review of the budget presents a fresh hurdle before the lender approves the release of pending bailout funds, which are crucial for Pakistan to resolve an acute balance of payments crisis.
The finance ministry did not immediately respond to Reuters' request for a comment.
"In all IMF programs, the authorities issue a letter of intent associated with the last review outlining their policy intentions for the period after the program," Nathan Porter, IMF mission chief to Pakistan, told Reuters on Thursday.
Pakistan has struggled to strike a deal with the IMF to release funds critical to stabilise the struggling economy.
On Thursday, Finance Minister Mohammad Ishaq Dar reiterated that Pakistan has already taken all the agreed steps to unlock the funding.
Prior to that, the government said that external financing was the last hurdle for the deal. Pakistan is required to give an assurance that its balance of payments deficit is fully financed for the fiscal year ending in June to unlock the next tranche of IMF funding.
The United Arab Emirates, Saudi Arabia, and China came to Pakistan’s assistance in March and April with pledges that would cover some of the funding deficit.
Open market rate
Following are the rates of different foreign currencies in the open market. The rates were updated at 8 in the morning.
The buying rate of one US Dollar (USD) was Rs 286.00, while the selling rate was Rs 289.00.
The buying rate of one Saudi Riyal (SAR) was Rs 75.50, while the selling rate was Rs 76.30.
The buying rate of one Euro (EUR) was Rs 314.80, while the selling rate was Rs 318.00.
The buying rate of one UK Pound Sterling (GBP) was Rs 357.40, while the selling rate was Rs 361.00.
The buying rate of one UAE Dirham (AED) was Rs 77.50, while the selling rate was Rs 78.50.
The buying rate of one Canadian Dollar (CAD) was Rs 208.50, while the selling rate was Rs 210.50.
Reporter Ashraf Khan