Karachi, May 10, 2024 – In a positive close to the week, the Pakistani Rupee appreciated by 8 paisas against the US dollar, finalizing at PKR 278.12 from the previous day’s close of PKR 278.20 in the interbank market.
This increment in the rupee’s value is largely attributed to a significant boost in Pakistan’s foreign exchange reserves. Recent data from the State Bank of Pakistan (SBP) revealed an infusion of $1.143 billion, elevating the total reserves to $14.459 billion as of May 3, 2024. The substantial increase, from the preceding week’s $13.316 billion, primarily stems from the disbursement of $1.1 billion by the International Monetary Fund (IMF) under its Stand-By Arrangement (SBA) program, bolstering the country’s economic stability.
The IMF’s financial support arrives at a critical time for Pakistan, which has been implementing various measures to stabilize its economy. Among these efforts, a notable reduction in the trade deficit has been observed. The Pakistan Bureau of Statistics (PBS) reported that the deficit shrank by 17% year-on-year for the first ten months of fiscal year 2024, dropping from $23.54 billion to $19.51 billion. This decline is crucial for the nation’s fiscal health and is viewed as a foundational element of its stabilization strategy.
Simultaneously, Pakistan’s export sector has demonstrated remarkable resilience, achieving a 9.10% growth to reach $25.28 billion from $23.17 billion in the prior fiscal year. This growth has been facilitated by strategic pricing adjustments and successful market expansion efforts.
An official from the Ministry of Commerce highlighted the importance of these developments, saying, “Exports are essential for driving foreign exchange earnings, generating employment, and supporting industrial growth. Our strategies to enhance export competitiveness are proving effective amidst global economic challenges.”
Moreover, the SBP noted that the overall improvement in reserves, including a $36 million increase in the week ending April 26 to a total of $13.32 billion, has provided a much-needed buffer against external financial pressures. The SBP’s portion of these reserves stood at $8.006 billion.
As the Pakistani Rupee shows signs of stability and strength, the outlook for the nation’s economy appears increasingly optimistic. With continued support from international financial institutions and effective domestic policies, Pakistan is poised to maintain this momentum towards greater economic resilience.
