Karachi, November 17, 2023 – The Pakistani Rupee (PKR) showcased a notable upswing against the US dollar, closing at PKR 286.50 in the interbank foreign exchange market on Friday.
This positive movement, reflecting a gain of  88 paisas over the previous day’s closing rate of PKR 287.38, is attributed to recent key developments, notably the successful Staff-Level Agreement (SLA) between the International Monetary Fund (IMF) and Pakistani authorities.
The IMF announced on Wednesday that this agreement signifies the inaugural review of Pakistan’s stabilization program, supported by the IMF’s $3 billion Stand by Arrangement (SBA), aimed at fortifying the country’s economic stability.
Headed by Nathan Porter, an IMF team engaged in discussions with Pakistani officials in Islamabad from November 2-15, 2023. Pending approval from the IMF’s Executive Board, the SLA will unlock approximately $700 million, bringing the total disbursements under the program to nearly $1.9 billion.
Market analysts are underscoring the surge in export proceeds as a substantial factor influencing the rupee’s positive performance.
As Pakistan grapples with economic challenges, there is increasing pressure on the government and financial institutions to enact policies addressing the root causes of the rupee’s depreciation.
The nation’s adept handling of these challenges not only impacts its eligibility for the upcoming IMF tranche but also plays a pivotal role in shaping the economic trajectory in the coming months.
Market participants and policymakers will closely watch for developments to evaluate the efficacy of measures taken to stabilize the currency and foster economic resilience amid global uncertainties.
