A day after the government successfully negotiated the highly-anticipated agreement with the International Monetary Fund, the rupee finally ended its losing skid against the dollar on Wednesday, rising 80 paise in the interbank market (IMF) Latest Blogs.
The rupee increased by Rs3.80 to Rs 208 against the dollar today at 2:50 p.m., from Tuesday’s close of Rs 211.80, according to the Forex Association of Pakistan (FAP). The dollar had increased by 80 paise at Wednesday’s closing time, trading at Rs211.
The rupee’s value had been steadily falling for weeks before this development, which has been chiefly attributed to the nation’s rising import costs and diminishing foreign exchange reserves. Yesterday, the dollar reached a record high, gained sharply Rs2, and had been on the rise against the local currency for the eighth consecutive session. The dollar has increased by more than Rs30 since April 11, when the PML-N coalition government took office.
The Exchange Companies Association of Pakistan’s general secretary, Zafar Paracha, attributed the rupee’s recovery to the good news surrounding the IMF accord. By the end of the week, hopefully, the agreement will be finalized, opening the door for loans from China and other financial institutions.
In July 2019, Pakistan and the IMF agreed to a 39-month, $6 billion Extended Fund Facility, however, the Fund ceased disbursing roughly $3 billion when the previous administration broke its promises and announced gasoline and energy subsidies.
However, in a major development, last night, Pakistan and the program reached an agreement on the federal budget for 2022–2023, which allowed for the revival of the extended fund facility (EFF) after authorities pledged to raise an additional Rs436 billion in taxes and gradually raise the petroleum levy up to Rs50 per liter.
“Discussions between the IMF staff and the authorities on strategies to strengthen macroeconomic stability in the coming year continue,”
IMF Resident Representative in Pakistan Esther Perez Ruiz had earlier told Dawn.