Rupee makes minor gain against US dollar

KARACHI: The Pakistani rupee (PKR) on Tuesday registered a minor gain against the US dollar in the interbank market, according to the State Bank of Pakistan (SBP) report.

The local unit gained Re0.03 against the greenback to close at Rs283.55 in the interbank market. The greenback had closed at Rs283.58 a day earlier.

Interbank closing #ExchangeRate for todayhttps://t.co/w5WufvpgyO pic.twitter.com/6kiUUl43Xe

— SBP (@StateBank_Pak) March 28, 2023

According to the Forex Association of Pakistan (FAP), the buying and selling rates of dollars in the open market were recorded at Rs 285.2 and Rs 287 respectively.

IMF bailout dealy

Analysts said the market was expecting the IMF bailout programme to revive last week, and further delays caused the rupee to lose ground against the dollar.

In new condition, the International Monetary Fund (IMF) wants friendly countries to honor their commitments to fund cash-strapped Pakistan before the multilateral lender signs off on a $6.5 billion bailout program.

The staff-level agreement between the IMF and Pakistan was scheduled to take place on February 9.

Shehbaz Sharif-led government is taking desperate measures to get much-needed funds, but the IMF is not looking satisfied with the prior steps taken by the incumbent government.

As per details, Pakistan has become active to get written assurances from Saudi Arabia and the United Arab Emirates (UAE) about external financing to strike a staff-level agreement with the IMF.

Sources having knowledge of the development said PM Office, the foreign ministry and the finance ministry have become active to meet the condition of the IMF for the confirmation of $3 billion in external funding from Saudi Arabia and the UAE.

Read more: Pakistan approaches Saudi Arabia, UAE to meet IMF conditions

The sources said that the IMF demanded of Pakistan to jack up the interest rate by 4pc. The fund was of the view that inflation is lower in Pakistan as per interest rate.

The SBP recently raised the interest rate by 2pc but now the IMF is ‘forcing’ Islamabad to again increase the interest rate by 2pc.