US dollar further weakens against Pakistani rupee

KARACHI: The Pakistani rupee appreciated against the US dollar in the interbank market, closing at Rs280.36 on Friday. The rupee gained 75 paisa or 0.27 per cent from the previous close of 281.11.

On Thursday, the International Monetary Fund (IMF) approved a $700 million loan tranche for Pakistan as part of a $3 billion bailout package. The loan was aimed at supporting Pakistan’s economic stabilization programme and creating space for social and development spending.

The IMF praised Pakistan’s progress on fiscal discipline, exchange rate flexibility, monetary policy tightening, and structural reforms, especially in the energy sector, state-owned enterprises, and climate resilience¹.

The IMF loan, along with other inflows from multilateral and bilateral partners, helped ease Pakistan’s external debt repayment pressure and boosted the confidence in the Pakistani rupee.

The State Bank of Pakistan (SBP) reported that the country’s foreign exchange reserves increased by $1.2 billion to $16.383 billion in the week ending January 10, 2024. The SBP attributed the increase to the IMF disbursement and other official inflows.