Karachi, June 23, 2023 – The Pakistani Rupee (PKR) closed on a stronger note against the US dollar as demand for imports and corporate payments increased over the weekend.
The interbank foreign exchange market saw the exchange rate remain unchanged at PKR 286.74 per dollar, compared to the previous day’s closing rate of PKR 286.73.
READ MORE: PKR Makes Third Consecutive Gain Against Dollar on June 22, 2023
Currency experts noted that the local currency faced pressure against the US dollar due to the rising demand for imports and corporate payments at the weekend. However, market sentiment remained positive as the central bank announced substantial foreign inflows.
The State Bank of Pakistan (SBP) recently announced the receipt of $300 million in proceeds from commercial loans during the past week, further boosting confidence in the market.
READ MORE: PKR Gains 24 Paisas Against Dollar at Interbank Closing
On the other hand, Pakistan’s foreign exchange reserves experienced a significant decline of $514 million over the previous week. As of June 16, 2023, the reserves stand at $8.864 billion, down from $9.378 billion on June 9, 2023.
Despite a substantial reduction in the current account deficit during the first eleven months of the current fiscal year, Pakistan continues to face challenges on the external front. The continuous decline in foreign exchange reserves poses a threat to the country’s repayment capabilities.
READ MORE: Pakistani Rupee Gains Slightly Against Dollar as Current Account Deficit Narrows
Currency experts believe that the recent meeting between Prime Minister Shehbaz Sharif and Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), will assist the country in securing a loan program.
Pakistan is currently grappling with a severe balance of payment crisis due to the delayed IMF loan program under the Extended Fund Facility (EFF). Resolving this crisis is crucial for stabilizing the country’s economic situation.
READ MORE: Pakistani Rupee Declines Against US Dollar Due to High Demand at Week’s Start
