In interbank trade, the US dollar resumed its recovery trend against the Pakistani rupee and increased by 65 paisas to reach Rs 214.
Since the IMF broke the agreement with the government’s Finance team, which Miftah Ismail chairs, the local currency is on the road to recovery.
The last closing of the previous week was Rs214.65 which was 35 paisas less than Thursday’s closing which was Rs214.95.
Interbank closing #ExchangeRate for todayhttps://t.co/O7Zeot4br1 pic.twitter.com/HbGaz1fj5A
— SBP (@StateBank_Pak) August 19, 2022
Moreover, sources in the Ministry of Finance stated that all barriers to the loan revitalization deal between Pakistan and the IMF have been removed.
The Pakistani rupee is anticipated to perform significantly better in the coming days.
SBP Governor (A) Dr. Murtaza Syed during his visit to PSX said that recent extreme pressure on Pakistan’s FX reserves, currency, and the current account is temporary in nature and is being forcefully addressed and Pakistan is over financed during FY23.
The Pakistani government issued a letter of acceptance to the IMF last week, according to the Ministry of Finance.
According to the finance ministry, the IMF will now analyze the information presented by Pakistan at its board meeting and issue the $1 billion tranche.
The Federal Minister for Finance and Acting Governor of the State Bank of Pakistan (SBP) will sign the final version following the IMF board’s review.
According to TV channel sources, the IMF Executive Board meeting will likely take place on August 29, 2022.
“After months of economic and political uncertainties, [I am] happy to see Pakistan rupee and the stock market being top performers in August beating all other countries based on Bloomberg data.
The rupee is up 11 percent, while the KSE-100 Shares Index is up 22 percent in dollar terms,” said Mohammed Sohail, CEO at Topline Securities, on his official Twitter handle.
Pakistan’s rupee is one of the 14 world currencies that have posted gains versus the greenback together with Madagascar’s ariary, Israel’s shekel, Ugandan shilling, and Colombian peso.