Karachi, November 16, 2023 – Breaking the downward trend, the Pakistani Rupee (PKR) displayed resilience against the US dollar, concluding at PKR 287.38 in the interbank foreign exchange market on Thursday.
In a noteworthy daily gain, the local currency surged by 76 paisas, surpassing the previous day’s closing rate of PKR 288.14 in the interbank foreign exchange market.
This positive momentum for the Pakistani Rupee can be attributed to recent developments, particularly the successful staff-level agreement (SLA) reached between the International Monetary Fund (IMF) and Pakistani authorities.
The IMF revealed on Wednesday that this agreement marks the first review of Pakistan’s stabilization program, supported by the IMF’s $3 billion Stand by Arrangement (SBA), aimed at reinforcing the economic stability of the country.
Led by Nathan Porter, an IMF team engaged in discussions with Pakistani officials in Islamabad from November 2-15, 2023. The SLA is now pending approval from the IMF’s Executive Board. Upon approval, approximately $700 million will be made available, bringing the total disbursements under the program to nearly $1.9 billion.
Market analysts are pointing to the surge in export proceeds as a significant factor influencing the rupee’s positive performance.
With Pakistan facing economic challenges, there is mounting pressure on the government and financial institutions to implement policies addressing the fundamental causes of the rupee’s depreciation. The nation’s ability to navigate these challenges not only affects its eligibility for the upcoming IMF tranche but also plays a pivotal role in shaping the economic trajectory in the months ahead.
Market participants and policymakers will closely monitor developments to assess the effectiveness of measures taken to stabilize the currency and promote economic resilience amid global uncertainties.
