In early trade, the Pakistani Rupee (PKR) achieved a historic recovery against the dollar, strengthening by 13.93 and trading at PKR 285 in the interbank foreign exchange market.
This significant rebound followed the previous day’s closing rate of PKR 298.93, which had marked the lowest level of the local currency against the dollar.
READ MORE: Rupee witnesses bloodbath; hits record low of PKR 298.93 against dollar
The recovery of the rupee was attributed to the apex court’s order to release former Prime Minister Imran Khan, as the Supreme Court of Pakistan deemed his arrest by the National Accountability Bureau (NAB) illegal. Imran Khan’s arrest on corruption charges within the premises of the Islamabad High Court had sparked nationwide protests and criticism from political parties, leading to political turmoil that negatively affected investor confidence and the value of the rupee.
READ MORE: INTERBANK CLOSING: Rupee hits historic low at PKR 290.22 to dollar
Furthermore, the rupee’s appreciation was supported by the recent statement from the International Monetary Fund (IMF), expressing its intention to continue the loan program with Pakistan.
Currency experts are closely monitoring these developments while exercising caution regarding the future outlook of the Pakistani Rupee. They emphasize that to stabilize the currency and restore investor confidence, the government must take decisive measures. This may involve implementing effective economic policies, addressing corruption concerns, and creating a transparent and predictable investment environment.
READ MORE: PKR ends at Rs284.84 against dollar in interbank
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 essential steps to alleviate concerns surrounding the economy and enhance the value of the rupee in the international market.
READ MORE: Pakistani Rupee weakens by 26 paisas against dollar in interbank on May 8, 2023
It is important to recognize 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 crucial in achieving financial stability and restoring confidence in the Pakistani Rupee.
