As uncertainty about the IMF loan programme continued to grip the money market, the Pakistani rupee edged up against the US dollar in the interbank business on Thursday. According to the information extracted from the forex dealers, the local currency was appreciated by 37 paisas against the greenback and was currently being traded at Rs285.10. On Wednesday, the Pakistani rupee had sustained marginal losses against the US dollar, depreciating by 0.04% in the interbank market. At close, the currency settled at 285.47, a decline of 12 paisas.

In a key development, Minister of State for Finance Ayesha Ghous Pasha had said that the IMF does not have the mandate to interfere in the internal affairs of Pakistan. According to a Reuters report, IMF mission chief for Pakistan Nathan Porter said on Tuesday that the IMF remained in touch with the government in Pakistan in order to pave the way for a board meeting before a financing programme expires at the end of June. Porter said that broadly speaking, "overcoming the present economic and financial challenges would require sustained policy efforts and reforms for Pakistan to regain strong and inclusive private-led growth."

While the IMF does not comment on domestic politics, the IMF official said it hopes "a peaceful way forward is found in line with the Constitution and the rule of law," referring to Pakistan's political instability. Talking to newsmen in Islamabad on Wednesday, Ayesha Pasha said that the IMF programme is ending on June 30, adding that no discussion had been held regarding extension of the current programme.

Pakistan had signed the current 36-month $6 billion Extended Fund Facility in July 2019. The IMF, however, extended the programme by nine months to June 30, 2023 and its size was also increased to $6.5 billion. Over the past almost four years, the programme has been derailed at least four times, including on two occasions during the tenure of the current coalition government.

Credit: Independent News Pakistan: INP