KARACHI: Pakistani Rupee (PKR) has gained 11 paisas against the dollar on Friday after the Asian Development Bank (ADB) approved a financing of $1.5 billion to the country.
The exchange rate recorded a gain of 11 paisas in rupee value to end at PKR 220.84 to the dollar from previous day’s closing of PKR 220.95 in interbank foreign exchange market.
READ MORE: Dollar inches up to end at PKR 220.95 in interbank market
Currency experts said that the approval of loan program by the ADB helped the rupee to make gain.
The ADB in a statement on Friday said that it had approved $1.5 billion in financing to help the Government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.
Besides, the rupee was also supported by contraction in current account deficit during the first quarter of the current fiscal year.
READ MORE: Rupee plunges to PKR 220.88 against dollar in interbank
Pakistan’s current account deficit has recorded a decline of 37 per cent to $2.21 billion during first quarter (July – September) of fiscal year 2022/2023, according to official data released on Wednesday.
The current account deficit of the country was $3.53 billion in the same quarter of the last fiscal year.
Contraction in current account deficit can be attributed to significant fall in trade deficit. The trade deficit also contracted by 21.32 per cent to $9.22 billion during first quarter of the current fiscal year as compared with the deficit of $11.72 billion in the same quarter of the last fiscal year.
READ MORE: Rupee fall continues; Dollar ends at PKR 219.71 in interbank
Furthermore, the local currency also received support as the level of foreign exchange reserves were remained flat.
Pakistan’s weekly foreign exchange reserves increased nominally to $13.251 billion by week ended October 14, 2022 as compared with $13.247 billion a week ago i.e. October 7, 2022.
