KARACHI: The Pakistani rupee rose sharply in the interbank market on Tuesday after the government reached an agreement with the International Monetary Fund (IMF).
The country secured a $3 billion short-term financing package from the IMF on Friday, giving the economy some much-needed respite as it teeters on the brink of default.
The greenback was trading at Rs 274.98 against Rs. It closed at 285.99 on June 27 – the last trading session before the Eid holidays.
On May 11, the dollar hit an interbank high of Rs 290.93. Since then, it has declined by Rs 23.43.
Speaking to Geo News, Topline Securities CEO Mohammad Sohail said the rupee appreciated by 3 percent as expected.
“The sustainability of the benefits will be confirmed in the coming days as the government claims that partial funds under the agreement will be disbursed by mid-July.”
Sohail added that the government has also claimed that it will get around $4-5 billion from Saudi Arabia, the UAE and the Islamic Development Bank – which will improve the dollar’s liquidity problems.
If these payments materialize, the rupee is likely to remain strong and stable, said the chief executive of Topline Securities.
“However, the pressure may increase if payments are delayed.”
If we believe the government’s claim that Pakistan’s reserves will increase to $14 billion by August, the rupee is likely to stabilize around 270 or 280, he added.
