ISLAMABAD, July 15 (ABC): After the IMF nod to revive the loan programme, the emboldened Pakistani rupee pounded on the US dollar in the interbank trading on Friday morning and scored a handsome gain. As the trading started, the Pakistani rupee wasted no time and soared past the greenback by Rs1.05.
According to the forex traders, the US dollar is now being traded at Rs208.75 down by Rs1.05. On Thursday, the Pakistani rupee had managed to gain only 30 paisas against the US dollar and ended the day at Rs209.80.
After the confirmation by the IMF that it had reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eight reviews of the EFF-supported programme which would pave the way for the release of the much-awaited $1.17 billion, the market sentiments showed signs of positivity giving boost to the otherwise slumping rupee.
The new agreement follows months of deeply unpopular belt-tightening by the government of Prime Minister Shehbaz Sharif, which took power in April and has effectively eliminated fuel subsidies and introduced new measures to broaden the tax base.
“Pakistan is at a challenging economic juncture,” Nathan Porter, who headed the IMF team, said in a statement, adding external factors and domestic policies were to blame. Pakistan is desperate for international support for its economy, which suffers from poor revenue collection and dwindling foreign reserves to pay its crippling debt.