ISLAMABAD: The Pakistani rupee appreciated by Rs5.50 on Thursday (at 2:10 pm) in the interbank market, a day after Finance Minister said Pakistan has signed a $2.3 billion loan agreement with a Chinese banks’ consortium.
The dollar was trading around Rs206.50 in the interbank market against its closing of Rs 212 on Wednesday. The government’s agreement with Chinese banks and progress on deal with IMF caused a blow to the US dollar in the inter-bank and open markets trading.
The appreciation was in line with the expectations of market analysts who foresaw that the rupee would see a correction today.
Analysts said that the outlook for the currency is expected to be bullish in sessions ahead given the bright chances of the revival of the International Monetary Fund (IMF) programme, dollar inflows contingent on the IMF into Pakistan, the expected launch of Sukuk by the government, and a fall in the international crude oil prices.
In his comments, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq said: “I think the rupee-dollar parity should improve as the IMF deal along with the Chinese deposit should improve sentiment in the currency market.”
Pakistan and the IMF achieved progress in striking a consensus on the budget measures for the fiscal year 2022-23 and the latter will share a draft memorandum of economic and financial policies (MEFP) very soon. The government is also expecting the multilateral lender to increase the size and duration of the $6 billion Extended Fund Facility.
Updated at 2:10 pm (June 23, 2022).
