Television staff

Rupee Recovers Nominally After Pakistan Reaches Services Level Agreement With IMF

— Reuters/File
  • The Pakistani rupee gains slightly against the US dollar.
  • The rupee closed at 209.80 against the dollar, up 0.14%.
  • The local unit rallies against the dollar on IMF news.

KARACHI: The Pakistani rupee rallied nominally against the US dollar in the interbank market on Thursday in response to news of a staff-level deal with the International Monetary Fund (IMF).

Data from the State Bank of Pakistan (SBP) showed the rupee closed at 209.80 against the dollar, up 0.14% from 210.10 – the previous close.

Pakistan-Kuwait Investment Company Research Director Samiullah Tariq said that with the announcement of the staff-level deal, “sentiment in the forex market has improved as rollover risk has diminished significantly.”

News that Pakistan and the IMF would finally reach a staff level agreement broke in the early hours of Thursday. It will pave the way for the release of $1.17 billion to support the country’s fragile economy.

Since the beginning of the last financial year (July 1, 2021), the rupee has fallen by 33.17% (or 52.26 rupees) compared to the close of the previous financial year at 157.54 rupees.

Economists and analysts have said that once Pakistan enters into the agreement with the IMF, it will not only bring in money from the Fund, but it will also increase Pakistan’s chances of getting loans from friendly countries. , which will lead to an increase in currencies.

An IMF statement said a “staff-level agreement” – which is still subject to board approval – will increase the amount distributed under an extended financing facility (EFF) to 4 $.2 billion, which could grow to $7 billion and stretch to June of next year. .