During interbank trade on Thursday morning, the rupee increased by Rs1.6 to the dollar. Analysts generally attribute the rebound to Pakistan and the International Monetary Fund (IMF) achieving a staff-level agreement for the renewal of the loan program.
From the close of Rs210.1 the day before, the local currency increased by Rs1.6, according to the Forex Association of Pakistan (FAP). The dollar was trading at Rs208.5 in the interbank market at 11:40 a.m.
The growth of Pakistan’s lending program by the Fund, according to FAP Chairman Malik Bostan, was responsible for the development. He told Dawn.com, “We are hoping to see a further decrease in the dollar, maybe below Rs200.
Bostan added that the decline in crude oil prices would aid in reducing the nation’s import expenses, which would eventually result in a decline in inflation. He noted that all of this will reduce economic pressure and said that the nation had “come out of danger.”
According to expert Komal Mansoor, the market anticipates a decline of the dollar to at least Rs205. She said, “The change will be gradual. Right now, only a staff-level agreement has been reached. I feel the market will move when an executive-level agreement is reached.”
The IMF said earlier today that it and Pakistan had struck a staff-level agreement. The agreement came about after the government complied with the IMF’s demand that the nation generates an Rs152 billion primary budget surplus to renew the rescue package. A staff-level agreement (SLA) between the IMF team and the Pakistani government has been achieved for the completion of the combined seventh and eighth evaluations of the program supported by the extended financed facility (EFF). The Executive Board of the IMF must approve the accord.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
