The Pakistani Rupee (PKR) experienced a momentous rebound on Friday, recording a historic single-day recovery of PKR 13.85 against the dollar in the interbank foreign exchange market’s closing rates.
This remarkable upturn comes after the local currency hit its lowest level against the dollar at PKR 298.93 the previous day. The sudden recovery of the rupee can be attributed to the Supreme Court of Pakistan’s order to release former Prime Minister Imran Khan, deeming his arrest by the National Accountability Bureau (NAB) illegal.
READ MORE: PKR stages remarkable recovery, surging to 285 against dollar in early trading
Imran Khan’s arrest, which occurred within the premises of the Islamabad High Court on corruption charges, sparked nationwide protests and drew criticism from political parties. The resulting political turmoil had a detrimental impact on investor confidence and the rupee’s value.
In addition, the rupee’s appreciation received a boost from the recent statement by the International Monetary Fund (IMF), expressing its intention to continue the loan program with Pakistan. This announcement further contributed to the positive sentiment surrounding the Pakistani currency.
READ MORE: Rupee witnesses bloodbath; hits record low of PKR 298.93 against dollar
Currency experts are cautiously observing these developments and remain cautious about the future outlook of the Pakistani Rupee. They stress that decisive measures need to be taken by the government to stabilize the currency and restore investor confidence. This may involve implementing effective economic policies, addressing corruption concerns, and creating a transparent and predictable investment environment.
Engaging in constructive dialogue with the IMF is crucial for the Pakistani government to secure the much-needed loan program. Demonstrating a commitment to fiscal discipline, implementing structural reforms, and ensuring good governance are vital steps in alleviating concerns about the economy and bolstering the rupee’s value in the international market.
READ MORE: INTERBANK CLOSING: Rupee hits historic low at PKR 290.22 to dollar
It is essential to acknowledge that currency fluctuations are not unique to Pakistan, as many emerging economies have faced similar challenges in recent years. The government’s response and its ability to address the underlying causes of the rupee’s depreciation will be instrumental in achieving financial stability and restoring confidence in the Pakistani Rupee.
