The Pakistani rupee dealt a heavy blow to the US dollar in the interbank market on Thursday as the local currency shot up by Rs2.02. According to the information made available by the forex dealers, the rupee skyrocketed by over rupees two and was currently being traded at Rs284.60. On Wednesday, the Pakistani rupee had recovered some ground against the US dollar, appreciating by 0.63% in the interbank market. The local currency settled at 286.62, an increase of Rs1.81.

Market experts had attributed topsy-turvy situation towards the lack of developments on the resumption of the International Monetary Fund (IMF) programme, which has remained stalled since last year. The resumption of the IMF programme is crucial for the cash-strapped South Asian economy, which is battling high inflation and low foreign exchange reserves.

In a key development, the IMF in its latest report, the World Economic Outlook (WEO), revised downward the GDP growth rate projection for Pakistan from 2% to 0.5% for the current fiscal year, i.e., 2023. The Fund projected a rise in inflation from 19.9% to 27.1% and unemployment from 6.2% to 7%.

Credit : Independent News Pakistan-INP