Pakistani currency has maintained a winning streak on the second consecutive working day, as it has further regained 0.63% (or Rs1.37) on a day-to-day basis to reach Rs218.75 against the dollar in the interbank market. This comes on the basis of a positive outlook of increased inflow of foreign currency into the country.
The currency had closed at Rs220.12 against the greenback on Tuesday, according to Pakistan’s central bank.
With the latest recovery, the domestic currency has cumulatively recovered 1.43% (or Rs3.17) in the past two days as compared to Monday’s closing at Rs221.92.
“As expected, the rupee has maintained momentum in the wake of the revival of the IMF loan programme of $6.5 billion for Pakistan on Monday,” an analyst observed.
The IMF executive board has approved the release of the next tranche of $1.1 billion within a week. He added that the inflow will help strengthen the country’s foreign exchange reserves and extend support to the rupee against the greenback.
“The rupee is expected to recover to Rs205-210 over the next one to two months,” he predicted.
The global community has pledged $700-750 million to help Pakistan rehabilitate its flood-affected areas and displaced citizens.
“This (pledges) is a blessing in disguise,” he noted, adding that the flood-related inflow will also help strengthen the country’s foreign exchange reserves and the value of the rupee.
Following the 2010-2011 floods in Pakistan, foreign donors pledged around $2.6 billion to rehabilitation he said, predicting that, “The country may receive aid in the range of $1.5-2 billion from the international community.”
Published in The Express Tribune, September 1st, 2022.
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