Business

Pakistani Rupee recover against US Dollar on ‘broad agreement’ with IMF

Pakistani Rupee recover against US Dollar on ‘broad agreement’ with IMF

A day after the government successfully negotiated the highly-anticipated agreement with the International Monetary Fund, the rupee finally ended its losing skid against the dollar on Wednesday, rising Rs3.80 in the interbank market (IMF).

The rupee increased by Rs3.80 to Rs208 against the dollar today at 2:50 p.m., from Tuesday’s close of Rs211.80, according to the Forex Association of Pakistan (FAP).

The rupee’s value has been steadily falling for weeks before to this development, which has mostly been attributed to the nation’s rising import costs and diminishing foreign exchange reserves. Yesterday, the dollar reached a record high, gained sharply Rs2, and had been on the rise against the local currency for the eighth consecutive session. The dollar has increased by more over Rs30 since April 11, when the PML-N coalition government took office.

Advertisement

The Exchange Companies Association of Pakistan’s general secretary, Zafar Paracha, attributed the rupee’s recovery to the good news surrounding the IMF accord. By the end of the week, hopefully, the agreement will be finalised, opening the door for loans from China and other financial institutions.

The Exchange Companies Association of Pakistan’s general secretary, Zafar Paracha, attributed the rupee’s recovery to the good news surrounding the IMF accord. By the end of the week, hopefully, the agreement will be finalised, opening the door for loans from China and other financial institutions.

“With the tax reform and petroleum levy implemented, there is no other major hurdle,” she noted, confident that the market sentiment will change from “extreme negative to neutral” and eventually positive.

The rupee has received some assistance from the IMF announcement, but Mettis Global Director Saad Bin Naseer told that it was expected to stay under pressure over the next sessions until a final confirmation was made.

The IMF loan facility had been in limbo since early April due to ongoing impasse in negotiations. The lender had previously voiced concerns over fuel and energy subsidies instituted by the previous PTI government and has since done the same regarding targets set by the new administration for the upcoming fiscal year.

In July 2019, Pakistan and the IMF agreed to a 39-month, $6 billion Extended Fund Facility, however the Fund ceased disbursing roughly $3 billion when the previous administration broke its promises and announced gasoline and energy subsidies.

However, in a major development last night, Pakistan and the programme reached an agreement on the federal budget for 2022–2023, which allowed for the revival of the extended fund facility (EFF) after authorities pledged to raise an additional Rs436 billion in taxes and gradually raise the petroleum levy up to Rs50 per litre.

RELATED: Pakistan reaches ‘Broad agreement’ with IMF to end uncertainty

Read more on Latest Business News on Pakistanlounge.pk

Click to add a comment

Leave a Reply

Your email address will not be published.

Business

Sibtain Ali is a Senior Editor Business at Pakistan Lounge and joined in October 2021. Formerly business editor at a renowned International News website

More in Business

AED to PKR

AED to PKR – UAE Dirham to PKR Rates Today in Pakistan | 25 June 2022

Ali ShanJune 25, 2022
SAR to PKR

SAR to PKR – Saudi Riyal to PKR Rates Today in Pakistan | 25 June 2022

Ali ShanJune 25, 2022
Today Gold Rate

Today Gold Rate in Pakistan | 25 June 2022

Ali ShanJune 25, 2022
What is super tax

What is super tax and which sectors will be impacted by it?

Web DeskJune 25, 2022
Rs 75 note

FACT CHECK: SBP has not released any design for Rs 75 note

Sibtain AliJune 25, 2022
Salary tax calculator:

Salary tax calculator: How much tax will be imposed on your salary?

Sibtain AliJune 25, 2022
Flour Prices in Karachi

Flour Prices in Karachi Increase by Rs. 200 in One Week

Sibtain AliJune 25, 2022

Revised Tax Slabs for Salaried Class 2022 – Tax Increased Drastically

Sibtain AliJune 25, 2022
$2.3bn from China

Pakistan receives $2.3bn from China, Miftah Ismail

Sibtain AliJune 24, 2022

Pakistan lounge is Pakistan’s premiere magazine for news in politics, technology, entertainment, health and fashion etc.

Copyright © 2022 Pakistan Lounge