US dollar recovers some ground but Pakistani rupee stands firm
March 6, 2023 12:16 PM
Pakistan rupee gained Rs4.46 during early Monday’s interbank trading, however, the US dollar retaliated strongly to cut short the Pakistani rupee gain to only 54 paisas at the close of the interbank trading, reported 24NewsHD TV channel.
On the back of a possible IMF deal this week, the Pakistani rupee sustained its upward trajectory against the US dollar as the local unit appreciated by Rs4.46 during Monday morning’s interbank trading and was being traded at Rs274 in the interbank session.
However, US dollar recovered later in the day and closed at Rs277.92 from RS278.46 in interbank trading as the Pakistan rupee recorded an improvement of 0.19 percent.
On Friday, the last trading day of the previous week, the Pakistani rupee managed to get an impressive gain against the greenback which was depreciated by Rs6.63.
The market remained positive on the media reports that the government and the International Monetary Fund (IMF) are resuming virtual talks today (Monday) to finalise the IMF deal.
Finance Minister Ishaq Dar said on Thursday that Pakistan’s negotiations with the Fund related to the completion of the ninth review of a $7 billion loan programme were near conclusion and the staff-level agreement with the global lender would be signed by next week.
The agreement with the IMF on the completion of the ninth review would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.
Pakistan on Thursday completed all prior actions needed for staff-level agreement (SLA) with the IIMF to avert sovereign default and secure the disbursement.
The government approved the continuation of up to Rs3.23 per unit special surcharge on electricity consumers to generate Rs335bn for debt servicing in the next fiscal year, allowing the rupee’s free float and increasing interest rates to 20pc.
Meanwhile, the cash-strapped Pakistan also received $500 million from a Chinese bank on Friday.
The Industrial and Commercial Bank of China Ltd on Friday approved a rollover of a $1.3 billion loan for cash-strapped Pakistan, which will help shore up its depleting foreign exchange reserves, Finance Minister Ishaq Dar said.
The facility will be disbursed in three instalments. The first one of $500 million has been received by the State Bank of Pakistan, Dar said in a tweet. “It will increase forex reserves,” he said.
Reporter Ashraf Khan