Rupee gains 41 paisas on World Bank inflows

KARACHI: The Pak Rupee appreciated by 41 paisas against dollar on Tuesday on inflows of funds from the World Bank.

The rupee ended Rs166.46 to the dollar from previous day’s closing of Rs166.87 in interbank foreign exchange market.

Currency experts said that shrinking current account deficit and foreign inflows helped the rupee to gain value against the foreign currency.

The State Bank of Pakistan (SBP) on Tuesday received $505.5 million from the World Bank.

Currency experts said that the inflows of workers remittances and export receipts were more than the demand for import payments.

The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

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