Dar phenomenon still works for Pakistani rupee’s rise against dollar

Finance minister reaffirms govt’s resolve to undertake IMF reforms

By: News Desk
Published: 10:54 AM, 30 Sep, 2022
Dar phenomenon still works for Pakistani rupee’s rise against dollar
Caption: Representational image.
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The rupee seemed to have cultivated a no-holds-barred demeanor against the US dollar as it kept gaining in the interbank trading. The PKR’s value appreciated by Rs1.18 per USD in the interbank on Friday, reported 24NewsHD TV channel. 

According to the forex dealers, the rupee kept up its ascending spree as the local unit smashed the US currency which was depreciated by Rs1.18 during the trading activity today. The dollar exchanged for Rs228.45 by the end of trading, down by Rs1.18 from yesterday’s close of Rs229.63. 

The market was still upbeat on the Ishaq Dar phenomenon as the recently-installed foreign minister is known for his strong-arming of the State Bank to bring the dollar rate down.

During the week, the rupee which was experiencing a freefall against the US dollar has steadied. During the last six trading sessions, the value of the dollar has decreased by more than Rs10. Even the differential between the open market and the interbank rates has been narrowed down.

On Thursday, the value of the dollar was depreciated by Rs1.50 and the American currency was exchanged for Rs230.50 in the open market.

Despite all good vibes, the gloom still haunts keeping in view the upcoming debt retirement instalment, falling foreign reserves and flood reconstruction/relief expenditure entailing billions of dollars.  

Ishaq Dar's virtual meeting with IMF mission chief

Finance Minister Ishaq Dar has reaffirmed the government’s commitment to undertake reforms envisaged under the IMF programme.

Talking to IMF Mission Chief Nathan Porter in a virtual meeting on Thursday, Ishaq Dar said that the government will take measures to reduce burden on the economy while protecting the vulnerable sections of the population.

He said that the government aims to address structural issues to help country end its fiscal deficit and move towards sustainable growth.

The Finance Minister recalled the meeting of Prime Minister Shehbaz Sharif with IMF Managing Director during his recent visit to the United States in which IMF MD vowed to support Pakistan in this difficult situation caused by the flash floods and reconsider the program conditions.

Speaking on the occasion, the IMF Mission Chief extended felicitations to the Finance Minister on assuming the Finance Ministry and shared IMF’s assessment of the challenges facing the economy.

He also expressed IMF’s support for Pakistan in this hour of need and in this context mentioned the meeting of the MD IMF with the Prime Minister of Pakistan. 

The IMF Mission Chief also discussed the support of international lenders for the country to mitigate the effects of flash floods. The Finance Minister thanked the IMF Mission Chief for IMF’s support at a difficult time for global economy.

Reporter Ashraf Khan