KARACHI: Pakistani Rupee (PKR) remained resilient against the US dollar on Thursday and recovered 26 paisas in interbank foreign exchange market.
The exchange rate ended at PKR 223.69 to the dollar from previous day’s closing of PKR 223.95 in the interbank foreign exchange market.
Currency experts said that tightening of monetary policy and contraction in import payment demand helped the rupee to make recovery.
Further, positive sentiments prevailed as the government on November 29, 2022 received $ 500 million from Asian Infrastructure Investment Bank (AIIB). The funds are deposited with SBP and will augment the foreign exchange reserves.
They said that the SBP should be more vigilant because latest efforts were not enough as Pakistan’s external sector was facing huge challenges.
Latest investment data revealed the foreign direct investment plunged by 52 per cent in first four months of the current fiscal year.
The current account deficit recorded a contraction in the first four months of the current fiscal year, but it swelled when compared with the previous month.
Pakistan needs foreign inflows on urgent basis to avoid balance of payment crisis. The foreign exchange reserves of Pakistan fell sharply during past few months making it difficult for the government to fulfill its foreign repayment commitments.
Foreign exchange (forex) reserves of Pakistan were at $13.796 billion by week ended November 11, 2022 as compared with $13.721 billion a week ago i.e. November 04, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.432 billion.
The official foreign exchange reserves of the State Bank nominally increased by $3 million to 7.96 billion by week ended November 11, 2022 as compared with $7.957 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.185 billion.