Rupee gains 40 paisas on funds inflow expectations

KARACHI: The Pak Rupee gained 40 paisas against dollar on Friday as expectation of improved foreign exchange reserves following disbursement of payment by the IMF.

The rupee ended at Rs166.79 to the dollar from previous day’s close of Rs167.19 in interbank foreign exchange market.

The rupee made gain for the third consecutive days owing to reports that the IMF board meeting scheduled for next week may approve $1.4 billion for Pakistan.

Currency experts said that the IMF disbursement would help the country to improve foreign exchange reserves.

The experts said that the rupee likely to gain further in future owing to lower import payment demand after decline in international oil prices.

The import bill of the country has declined by 21 percent in March 2020 over the previous month owing to lockdown to contain coronavirus pandemic.

The import bill was at $3.3 billion in March 2020 as compared with $4.185 billion in February 2020, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

Similarly, the pandemic also adversely affected the country’s exports. The exports fell by 15.56 percent to $1.8 billion in March 2020 as compared with $2.14 billion in February 2020.

The total import bill during July – March 2019/2020 fell by 14.42 percent to $38.81 billion as compared with $40.68 billion in the corresponding period of the last fiscal year.

However, the exports registered increase of 2.23 percent during first nine months of current fiscal year to $17.45 billion as compared with $17 billion in the corresponding months of the last fiscal year.

The trade deficit during first nine months contracted by 26.45 percent to $17.36 billion as compared with the deficit of $23.61 billion in the corresponding period of the last fiscal year.

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