In spite of the agreement with the International Monetary Fund (IMF), the Pakistani currency continues to experience depreciation against the dollar in the interbank.
On the last day of the business week (Friday), currency dealers observed a significant surge of Rs1.4 in the value of the dollar. It resulted in a further widening of the gap between the two currencies. Consequently, the new exchange rate in the interbank market reached 277.50 Pakistani rupees per dollar.
Interestingly, the open market presented a contrasting situation. The dollar experienced a slight decline of 2 rupees, settling at 278 Pakistani rupees against the dollar.
Various factors, including global economic conditions, attribute to the appreciation of the dollar in the interbank market. Besides these, Pakistan’s current account deficit, and the demand and supply dynamics of the dollar in the local market also affect the numbers. These factors collectively influence the exchange rate between the dollar and the Pakistani rupee, impacting the economy, trade, and investment.
IMF Provides $1.2 Billion First Tranche Of Stand-By Arrangement To Pakistan
Earlier this week, acting swiftly on its board’s order, the International Monetary Fund handed over to Pakistan the $1.2 billion first tranche of a $3 billion stand-by arrangement today.
Finance Minister Senator Muhammad Ishaq Dar disclosed this development on Thursday, hours after the IMF’s board approved a $3 billion stand-by arrangement for Pakistan.
On Wednesday, the board of the IMF ordered an immediate disbursement of $1.2 billion for Pakistan.
Dar said that the remaining amount of $1.8 billion will be released in two quarterly tranches after the evaluation of the IMF program. After the general elections, the new government would deal with the IMF and the implementation of the program.
