PKR gains against USD after IMF deal

KARACHI: After the International Monetary Fund (IMF) board approved a $7 billion loan programme for Pakistan, PKR has gained 20 paisas against the US dollar (USD) and closed at PKR 277.64, down from PKR 277.84.

According to details, the weekly report on the US dollar and other currencies has been released, which states that the rupee’s value improved following the IMF board’s approval of the $7 billion loan.

In one week, the US dollar in the interbank market became 20 paisas cheaper, closing at PKR 277.64 from PKR 277.84, while in the open market, the dollar became 55 paisas cheaper, closing at PKR 289.15.

The State Bank of Pakistan (SBP) reported that in one week, the SBP’s reserves increased by $24 million, surpassing $9.50 billion as of July 7, 2022.

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Commercial banks’ reserves increased by $23 million to $5.30 billion, while the country’s total reserves increased by $47 million, surpassing $14.90 billion as of July 15, 2022.

In one week, the euro in the open market decreased by 41 paisas to PKR 311.11, while the British pound increased by PKR 1.87 to PKR 373.72.

During the week, the UAE dirham decreased by 12 paisas to PKR 76.08, and the Saudi riyal decreased by 12 paisas to PKR 74.28.

Pakistan received the first tranche of the International Monetary Fund’s (IMF), yesterday –on September 27– following the approval of the IMF Executive Board of a 37-month Extended Fund Facility amounting to US$7 billion.

State Bank of Pakistan (SBP) received SDR 760 million –equivalent to USD 1026.9 million– as the first tranche from the IMF on Friday, according to SBP. These inflows will be reflected in SBP liquid reserves to be released on Thursday, October 03, 2024.

The International Monetary Fund (IMF) Executive Board on September 25 approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of about US$7 billion, ARY News reported citing sources.

The IMF Executive Board in its meeting considered Pakistan’s request for an Extended Arrangement under the Extended Fund Facility. Pakistan would receive an initial instalment of US$1.1 billion by September 30, with the loan carrying an interest rate below 5 per cent.