Pakistani rupee strengthened for the second day in a row in the interbank market and recovered 47 paisas (+o.27 percent) against the US dollar on Tuesday. According to the State Bank of Pakistan, the US dollar opened at Rs174.77 and closed at Rs174.30. Within the open market, the rupee was traded at 175/176.50 per dollar. The local currency gained 94 paisas against the greenback during the last two days. Overall, the rupee’s depreciation during the ongoing fiscal year 2021-22 has been Rs16.88 and Rs14.13 in the current year 2021. According to currency experts, the market opened positively following an announcement made by Adviser to the PM on Finance Shaukat Tarin that the International Monetary Fund (IMF) Board will approve the next tranche to Pakistan on January 12, 2022. The adviser also explained how the country will implement the prior actions set by the global lender. They said that completion of the sixth review may help stabilise the exchange rate for a long period, adding it would arrest the rupee’s slide and steer recovery of local currency against the greenback. They, however, said that large imports are still a threat to the rupee’s stability. The import bill also resulted in ballooning of the current account deficit. Pakistan’s current account deficit sharply widened to $5.08 billion during the first four months (July-October) of the current fiscal year, compared with a surplus of $1.31 billion in the same period of the last year. The experts said the latest efforts of the SBP might not help stabilise the exchange rate until foreign inflows are not materialised. They said the Saudi government has pledged $3 billion as cash transfer to Pakistan for assisting in the balance of payment; however, such amount has not been transferred to the SBP yet, sending negative signals to the market.