Pakistani rupee gains more strength against US dollar
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The exchange rate improved as Pakistan gets $1 billion tranche from the international lender on Feb 2. The greenback on Friday fell below the Rs175 barrier and is being traded at Rs174.60 in interbank trading.
Federal Finance Minister Shaukat Tarin took to social media on Wednesday to share the IMF Board news. "I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan," Tarin tweeted.
In its press release, the IMF stated on Thursday that economic activity was rebounded strongly from the first waves of the ongoing COVID-19 pandemic, however, pressures also started to build, reflected in a widening current account deficit and rising inflationary pressures. The authorities’ recent economic and financial policy efforts were appropriate to safeguard macroeconomic stability and debt sustainability.
The Fund observed that Pakistan entered the COVID-19 pandemic with strengthened buffers, following the approved EFF programme. A strong economic recovery has gained hold since summer 2020, benefiting from the authorities’ multifaceted policy response to the unprecedented shock. At the same time, external pressures also started to emerge in 2021, including a widening current account deficit and depreciation pressures on the exchange rate which also reinforced domestic price pressures.
Reporter Habib Khan