ISLAMABAD: Pakistani rupee finally showed a strong recovery on Wednesday amid reports of a deal between the government and the IMF for the resumption of loan. PKR gained Rs3.80 in the interbank market, closing at Rs208 on June 22, 2022.
The development comes after weeks of persistent declines in the rupee’s value, which has been largely attributed to the country’s rising import bill and depleting foreign exchange reserves. Yesterday, the greenback was at an all-time high, appreciating by a sharp Rs2 and had been on a bull run against the local currency for the eighth session in a row. Since April 11, when the PML-N coalition government took over, the dollar has gained over Rs30.
General secretary of the Exchange Companies Association of Pakistan Zafar Paracha credited the rupee’s recovery to the good news related to the IMF deal. “Hopefully, once the deal is finalised by the end of this week, it will pave way for loan from China and other financial institutions.”
Meanwhile, Mettis Global Director Saad Bin Naseer told The Truth International that although rupee has found some support from the IMF news, it was likely to remain under pressure during the next few sessions until a final confirmation was announced.
The IMF loan facility had been stalled since early April as negotiations with the international money lender remained inconclusive, with the lender earlier expressing reservations over fuel and energy subsidies introduced by the previous PTI government and now over targets set by the new government for the upcoming fiscal year.
Pakistan had signed a 39-month, $6 billion deal with the IMF in July 2019, but the Fund stopped the disbursement of $3 billion when the previous (PTI) government violated the agreement by announcing fuel and energy subsidies.
