Pakistani rupee bounces back after IMF agreement

KARACHI: The Pakistani rupee registered gains against the United States (US) dollar in the interbank market on Monday, on the back of a staff-level agreement between Pakistan and the International Monetary Fund (IMF).

According to foreign currency dealers, the dollar is trading at Rs174.70 after depreciating Rs0.58 against the local currency in early trade on the first trading day of the week.

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The greenback had closed at Rs175.24 against the rupee in the interbank market on Friday. In the open market, however, the dollar is trading at Rs173.80.

It is pertinent to mention here that Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on revival of $6 billion Extended Fund Facility (EFF) that was suspended in April this year.

“The Pakistani authorities and IMF staff have reached a staff-level agreement on policies and reforms needed to complete the sixth review under the EFF,” read a statement issued by the Fund.

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“The agreement is subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms. Completion of the review would make available SDR 750 million (about US$1,059 million), bringing total disbursements under the EFF to about US$3,027 million and helping unlock significant funding from bilateral and multilateral partners.