Pakistani rupee holds its ground against US dollar

Published: 11:09 AM, 28 Mar, 2023
Business
Pakistani rupee holds its ground against US dollar
Caption: Representational image.

In the interbank trading on Tuesday, the Pakistani rupee held its ground by strengthening its position and appreciated nominally against the US dollar, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the trading saw a sliding of US dollar which lost its value by three paisas and ended the day at Rs283.55 in the interbank market. 

Yesterday, the local currency lost 38 paisas in value against the greenback and ended the day at Rs283.58.

The local unit is facing a continuous pressure since past few years due to challenges to the economy and uncertain political conditions.

According to the head of Research at Ismail Iqbal Securities, rupee is under pressure due to delay in the IMF programme. 

Even if the programme is back on track, it would be difficult for rupee to recover, given the low reserves and challenging global and domestic economic environment, he added.

The much needed IMF tranche is pending since November 2022 and every passing day increases the likelihood of default.

Pakistan is making efforts for resumption of the IMF’s Extended Fund Facility (EFF) of over $1 billion. The release of loan from the IMF will unlock further inflows from other international creditors.

Finance Minister Ishaq Dar on Sunday had said that “friendly” countries were expected to materialise their commitments with Pakistan that would pave the way to close the deal with the IMF and revive the economy.

However, the IMF objected to the government’s fuel subsidy announced for the low-income strata of society. 

IMF’s resident representative in Pakistan, Esther Perez Ruiz, said the government did not consult the fund about the fuel pricing scheme.

She said that a staff-level agreement would be signed once a few remaining points, including the fuel scheme, were settled.

Reporter Ashraf Khan 

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