PKR inches up by one paisa vs USD to reach 278.30

KARACHI, (Ind:desk): Pakistani rupee inched up against the US dollar in the interbank market by one paisa on Thursday.

According to details, the rupee opened at 278.31 against the greenback in the interbank market and closed at 278.30, inching up by 0.004 percent.

The rupee registered a slight decline against the US dollar last week as it settled lower by Re0.08 or 0.2%. The local unit ended at 278.39 against 278.31 it had closed the week earlier against the greenback. Earlier, the local unit snapped a four-month winning streak against the US dollar in the interbank market and edged lower by 0.13 percent in April. According to details, the rupee depreciated by Rs0.36 in April after improving by Rs1.16 in March, Rs0.39 in February, Rs2.36 in January and Rs3.31 in December. Overall, the rupee has improved by Rs7.69 against the greenback during the current fiscal year ‪2023-24‬.

The International Monetary Fund (IMF) executive board approved the final tranche of $1.1 billion of Pakistan’s $3 billion standby arrangement on Monday. The approval came a day after Prime Minister Shehbaz Sharif discussed a new loan program with IMF Managing Director Kristalina Georgieva on the sidelines of the World Economic Forum in Riyadh.

The IMF appreciated Pakistan’s policy and fiscal measures to achieve the targets under the standby arrangement. “Macroeconomic conditions have improved over the course of the program,” it said in a statement, adding that 2% growth was expected in the current fiscal year ending on June 30, given continued recovery in the second half. It said the fiscal position continued to strengthen with a primary surplus of 1.8 percent of GDP achieved in the first half of the fiscal year, on track to achieve primary surplus of 0.4% of GDP.

Islamabad is seeking a new, larger long-term Extended Fund Facility (EFF) agreement with the IMF. Finance Minister Muhammad Aurangzeb has said Islamabad could secure a staff-level agreement on the new program by early July. Islamabad says it is seeking a loan over at least three years to help achieve macroeconomic stability and execute long-overdue and painful structural reforms. Islamabad is yet to make a formal request, but the Fund and the government are already in discussions. If secured, it would be Pakistan’s 24th IMF bailout.