On May 3, 2023, the Pakistan Rupee (PKR) saw some relief as the US Dollar eased and closed at PKR 283.88 in the interbank foreign exchange market.
This was attributed to the latest trade data showing a significant decline in the import bill, which eased pressure on the PKR against the greenback.
READ MORE: Dollar rebounds to PKR 283.92 at interbank closing on May 2, 2023
However, concerns remain for investors as roadblocks in the International Monetary Fund (IMF) loan program persist, despite ongoing dialogue between the ruling party and opposition to resolve election date issues.
Political uncertainty stemming from conflicts between parliament and the Supreme Court over the Punjab elections, as well as mounting demand for foreign payments, have added further pressure on the exchange rate.
READ MORE: PKR makes gain against dollar amid easing political tension
While the recent current account surplus has provided some respite to the PKR, worries persist over the decline in remittances and depletion of foreign exchange reserves.
Positive developments, such as IMF assurances, funding commitments from Saudi Arabia and the UAE, and ease of import and corporate payments ahead of Eid holidays, have helped ease some concerns.
READ MORE: PKR weakens against dollar at interbank closing on April 27, 2023
Nonetheless, delays and roadblocks in the IMF loan program have exacerbated uncertainty and volatility in the foreign exchange market, underscoring the need for prompt and effective action to stabilize the currency and address underlying economic challenges.
READ MORE: PKR to dollar at interbank closing on April 26, 2023
