Islamabad: The Pakistani rupee (PKR) gained massive against the US dollar (USD) in the interbank market on Thursday, appreciating 1.04% amid expectations of the resumption of the International Monetary Fund (IMF) program.
At the end of today’s session, the local currency appreciated by Rs2.82 against the greenback in the interbank market.
Interbank closing #ExchangeRate for todayhttps://t.co/h41q3JSeF6 pic.twitter.com/DQ58zWRzx3
— SBP (@StateBank_Pak) February 9, 2023
The rupee had also made significant strides against the US dollar on Wednesday, closing at Rs273.33 against the US dollar, an appreciation of Rs2.95 or 1.08%.
Market watchers have attributed this significant recovery of the PKR against the USD to the ongoing talks between the Pakistani government and the International Monetary Fund (IMF) for the revival of the ninth review under the Extended Fund Facility (EFF) program.
Pakistan terms IMF’s few conditions ‘unrealistic’
The global lender is giving a “tough time” to Finance Minister Ishaq Dar and his team, as admitted by Prime Minister Shehbaz Sharif himself.
But, the government has put on a brave face to avert a nearing sovereign default, as the two sides remained short of concluding external financing estimates and precise domestic fiscal measures.
Differences still persist over external financing needs and power sector losses between the Fund and the cash-strapped South Asian country, delaying the handover of the draft memorandum of economic and financial policies (MEFP) to the Pakistan side.