The value of Pakistani rupee has appreciated by 49 paisas against the US dollar in the interbank on Friday. According to the data provided by the money dealers, the local currency again kept up its upward trajectory, making the US dollar to lose 49 paisas in the interbank trade. The American currency was being traded at Rs285.25. On Thursday, the local currency was edged up by Rs1.39 against the greenback which ended the day at Rs285.74.

The rupee upsurge for the past two trading sessions can be attributed to the statement made by Finance Minister Ishaq Dar on Wednesday in which he asserted that “country will absolutely not default”. During a gathering at the Federal Board of Revenue in Islamabad the other day, Dar said his team had completed all the technical work and prior actions required for the completion of the ninth review.

Moreover, Pakistan is also expected more than $2 billion roll over from China. Pakistan needs to pay around $3.7 billion in foreign debt obligations scheduled for payment in May and June. The Financial Times reported yesterday that two senior Pakistani officials said Beijing had committed to help the country meet two crucial debt repayments in June worth a total of $2.3bn by providing fresh funds immediately after Pakistan makes the payments.

The refinancing of the commercial loans worth $1.3bn and a Chinese government loan of $1bn would help Pakistan avert immediate default, the Pakistani official said. China earlier this year already rolled over some loans to Pakistan. Chinese foreign minister Qin Gang also reiterated Beijing’s financial support for the country on a visit to Pakistan earlier this month. The Pakistan foreign exchange reserves are drying up quickly. The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $118.9 million to $4.19 billion during the week ended on May 19, 2023, according to the data released by the central bank on Thursday. However, the reserves held by commercial banks moved up by $87.5mn to $5.53bn.

Credit: Independent News Pakistan-INP