KARACHI, (ind report): Pakistani rupee inched up against the US dollar in the interbank market on Tuesday and appreciated by two paisas.
According to details, the rupee opened at 278.20 against the greenback in the interbank market and closed at 278.18, going up by 0.01 percent. The rupee appreciated by around nine paisas against the US dollar last week.
Pakistan marches towards stability as formal discussions with the International Monetary Fund (IMF) for a longer and larger program have been initiated. It is crucial to note that Pakistan achieved satisfactory results under the Standby Arrangement with the International Monetary Fund (IMF), meeting all seven QPCs for end-December 2023. However, the IMF has raised concerns that a potential resurgence in Pakistan’s social tensions, reflecting the complex political scene and high cost of living, could weigh on policy and reform implementation.
Wall Street bank Citi expected Pakistan to reach an agreement with the International Monetary Fund (IMF) for a new four-year program of up to $8 billion by end-July. “A larger and longer IMF EFF (Extended Fund Facility) program could be finalised by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Nikola Apostolov at Citi wrote in a note to clients.
Meanwhile, foreign exchange reserves held by the SBP significantly increased by $1.114 billion on a weekly basis, clocking in at $9.12 billion as of May 3. Total liquid foreign reserves held by the country stood at $14.46 billion. Net foreign reserves held by commercial banks stood at $5.34 billion. This brings the SBP-held reserves to a nearly two-year high, as the dollar stockpile was last recorded above $9 billion back on July 15, 2022.
The central bank said the significant increase in the reserves was in line with $1.1 billion inflow from the International Monetary Fund (IMF), which was the final tranche of the $3 billion Stand-By Arrangement (SBA). “During the week ended on 03-May-2024, SBP reserves increased by US$ 1,114 million to US$ 9,120.3 million mainly due to receipt of US$1.1 billion from IMF as final tranche under SBA program,” the central bank’s statement read.
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