• About
  • Advertise
  • Contact
Tuesday, July 5, 2022
  • Login
WRITE FOR US
Economy.pk
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
No Result
View All Result
Economy.pk
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
Economy.pk
Home Business

Rupee snaps losing streak on IMF breakthrough, up Rs1.80 against dollar

bySuneela Zulfiqar
June 22, 2022
in Business, Finance
Reading Time: 3 mins read
0
Rupee snaps losing streak on IMF breakthrough, up Rs1.80 against dollar
631
SHARES
5.9k
VIEWS
Share on FacebookShare on Twitter

The rupee snapped its losing streak against the dollar on Wednesday, gaining Rs1.80 in the early morning interbank market.

The government secured the much-anticipated deal with the International Monetary Fund (IMF), which is expected to improve the country’s economic outlook.

RelatedPosts

ML-1 cost increases to $9.8 billion

PKR depreciates by Rs2.38 in interbank

Pakistan’s microfinance institution launches term finance certificates of $4.9 million

The Forex Association of Pakistan (FAP) said the rupee appreciated from Rs1.80 to Rs210 against the dollar at 9:49 am from Tuesday’s close of Rs211.80. However, by 10:45 am, the rupee had reversed some of today’s gains to reach Rs211 in interbank trade.

The current development follows weeks of decreases in the rupee’s value, which have been largely attributed to the country’s increasing import bill and decreasing foreign exchange reserves. Yesterday, the greenback reached an all-time high, appreciating by a sharp Rs2, and had been steadily gaining value against the rupee for the eighth session in a row. Since April 11, when the PML-N coalition government took over, the dollar has gained over Rs30.

Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan, credited the rupee’s recovery to the good news related to the IMF deal. “Hopefully, once the deal is finalised by the end of this week, it will pave way for a loan from China and other financial institutions.”

Komal Mansoor, research head at Tresmark, noted that the market had been expecting the local currency to rebound from the 212-mark based on the IMF deal, which was exactly what happened.

“With the tax reform and petroleum levy implemented, there is no other major hurdle,” she said, confident that the market sentiment will change from “extreme negative to neutral” and eventually positive.

Meanwhile, Mettis Global Director Saad Bin Naseer told that although the rupee has found some support from the IMF news, it was likely to remain under pressure during the next few sessions until a final confirmation was announced.

The IMF loan facility has been stalled since early April due to inconclusive negotiations with the international money lender. The lender had previously expressed reservations over fuel and energy subsidies introduced by the previous PTI government, and now has reservations over targets set by the new government for the upcoming fiscal year.

Pakistan signed a 39-month, $6bn Extended Fund Facility with the IMF in July 2019, but the Fund stopped the disbursement of about $3bn when the previous government reneged on its commitments and announced fuel and energy subsidies.

In a breakthrough last night, Pakistan reached an agreement with the IMF on the federal budget for 2022-23. This will lead to the revival of the extended fund facility (EFF) after authorities committed to generate Rs436 billion in more taxes and increase the petroleum levy gradually up to Rs50 per litre.

Earlier, IMF Resident Representative in Pakistan, Esther Perez Ruiz told: “Discussions between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue.”

The IMF mission will finalize monetary targets with the State Bank over the next couple of days and, in the meantime, share the draft of a Memorandum of Economic and Financial Policy (MEFP).

Tags: DollarIMF breakthroughlatestPakistanRupee
Suneela Zulfiqar

Suneela Zulfiqar

Related Posts

ML-1 cost soars to $9.8b

ML-1 cost increases to $9.8 billion

On Monday, the Senate Standing Committee on Railways was informed that the cost of upgrading Karachi to Peshawar Main Line-1...

PKR depreciates by Rs2.38 in interbank

PKR depreciates by Rs2.38 in interbank

The rupee depreciated against the US dollar on Tuesday, falling by Rs2.38 in the interbank market. The State Bank of...

Next Post
Pakistan & IMF sign agreement to release US$1 bn tranche

Pakistan & IMF sign agreement to release US$1 bn tranche

Recommended

ML-1 cost soars to $9.8b

ML-1 cost increases to $9.8 billion

PKR depreciates by Rs2.38 in interbank

PKR depreciates by Rs2.38 in interbank

Pakistan’s microfinance institution launches term finance certificates of $4.9 million

Pakistan’s microfinance institution launches term finance certificates of $4.9 million

Indian Airline plane makes ‘emergency landing’ in Karachi

Indian Airline plane makes ‘emergency landing’ in Karachi

Roshan Digital Account Inflows Surge by $250 Million

Roshan Digital Account Inflows Surge by $250 Million

World most followed Tik Toker Khaby Lame is a 'practicing Muslim' and 'Hafiz'

World’s most followed Tik Toker Khaby Lame is a ‘practicing Muslim’ and ‘Hafiz-e-Quran’

Connect with us

Twitter

Economy.pk

Economy.pk touches diverse topics with a lighter note and is geared toward audiences with various interests and all ages. Come and explore Economy.pk. Ample details and analysis are provided in extraordinarily readable manner making them compelling and interesting at the same time.

Category

  • World
  • Politics
  • Business
  • Technology
  • Education
  • Health
  • Life & Style
  • Opinions

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin

Sitelinks

  • Sitemap

Download our APP

download on android app download on apple app
  • About
  • Advertise
  • Contact

© 2022 All Rights Reserved Economy.pk | Designed & Developed by Digital Otters

  • LATEST
  • World
    • Europe
    • Americas
    • Asia
    • Oceania
    • Africa
    • Canada
    • Middle East
  • Finance
  • Politics
  • Business
    • Economy
    • Finance
    • Entrepreneurship
    • Real Estate
  • Technology
    • Cyber Security
    • Mobiles
    • Social Media
  • Education
  • Sports
  • Life & Style
    • Personalities
    • Art
    • Culture
    • History
    • Entertainment
    • Fashion
    • Food
    • Health
      • Environment
      • Fitness
  • Sponsored

© 2022 All Rights Reserved Economy.pk | Designed & Developed by Digital Otters

No Result
View All Result

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In