KARACHI, Aug 29(ABC): The Pakistani rupee surged against the US dollar Tuesday during intraday trade after the International Monetary Fund’s (IMF) executive board revived the much-awaited bailout programme for Islamabad.
The rupee appreciated by 2.42 to 219.50 against the US dollar during intraday trade in the interbank market, down from Monday’s close of 221.92.
After months-long hectic efforts, the global money lender approved the seventh and eighth reviews of the stalled $6 billion Pakistan programme, government officials announced Monday night.
Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha told Geo.tv that he expects the local unit to keep appreciating and fall to 200 in the coming days.
Paracha highlighted that as the deal materialised after a long delay, the government took some measures for fiscal tightening that led to an increase in smuggling.
Apart from the smuggling of dollars to Afghanistan, Paracha said that the heavy regulatory duties imposed on imports led to an increase in the smuggling of commodities — which resulted in a shortage of dollars.
He noted that although the amount from the global money lender amounted to $1.1 billion, it will pave the way for Pakistan to get additional funds from other multilateral and bilateral organisations.