Pakistani rupee recovers on renewed IMF deal hopes

KARACHI: A day after plummeting to an all-time low, the Pakistan rupee on Friday recovered against the US dollar after Finance Minister Ishaq Dar’s assurances of striking a deal with the International Monetary Fund (IMF) next week.

The local currency appreciated by R6.63 in the interbank market and closed at 278.46 against the greenback, according to the State bank of Pakistan (SBP).

The Pakistani rupee plunged by nearly Rs19, or 6.66%, against the US dollar to close at 285.09 against the dollar in the interbank market the other day.

Analysts attributed the downtrend to the delay in signing the staff-level agreement with the International Monetary Fund (IMF), as well as the impending policy rate hike by the central bank.

Pakistan has apprised the International Monetary Fund (IMF) of the implementation of demands for the revival $7 billion Extended Fund Facility (EFF) stalled for months.

Sources told ARY News that the officials from Ministry of Finance held talks with IMF and apprised it of the implementations of demands tabled for the revival if stalled loan programme.

Sources claimed that a decision to hold virtual talks between Pakistan and the Fund will be made tomorrow. During today’s meeting, the officials discussed performance of State Bank.

‘IMF agreement next week’

The federal minister wrote in a tweet that anti-Pakistan elements are spreading malicious ‘rumors’ that Pakistan may default. This is not only completely false but also belies the facts.

The finance minister claimed that all economic indicators are slowly moving in the right direction. Moreover, he maintained that the negotiations with IMF are about to conclude and expects to sign Staff Level Agreement with IMF by next week.