The Pakistani rupee on Friday extended its gain against the US dollar as the local currency went up again in the interbank market. According to the information received from the forex dealers, the rupee appreciated by Rs1.17 and was currently being traded at Rs283.25 On Thursday, reports of expected inflows from Saudi Arabia helped the Pakistani rupee register significant gain against the US dollar as the currency climbed by 1.21% in the interbank market. The rupee closed at 284.42, an increase of Rs3.43.

In a key development, Saudi Arabia has assured the International Monetary Fund (IMF) that it will provide a $2 billion loan to Pakistan, said Minister of State for Finance Aisha Ghaus Pasha. However, the IMF agreement still rests on a similar commitment from the United Arab Emirates for a $1 billion loan, she added.

The resumption of the IMF programme, stalled since last year, is crucial for the debt-ridden Pakistani economy. In another related development, the foreign exchange reserves held by the State Bank of Pakistan decreased by $36.4 million or 0.85% WoW to $4.2 billion during the week ended on March 31, 2023, according to the data released by the central bank.

Similarly, the country's total reserves decreased by $56.1 million or 0.57% WoW to $9.75 billion. The reserves held by commercial banks slumped by $19.7 million or 0.35% WoW to $5.55 billion. This was the second consecutive week wherein the foreign exchange reserves started shrinking again.

Credit : Independent News Pakistan-INP