Pakistan's rupee registers marginal gain against US dollar

Pakistan's rupee improved marginally in the inter-bank market on Tuesday, closing at 176.63 against the US dollar.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.63 after a day-on-day appreciation of 5 paisas or 0.03%.

Last month, the rupee had closed at its all-time record low of 178.24 against the US dollar before appreciating the following two days to end the year at 176.51.

Pakistan's rupee stable against US dollar in inter-bank market

The gain comes at a time when Pakistan is looking for approval from the International Monetary Fund (IMF) for the sixth review of the Extended Fund Facility (EFF). The IMF nod hinges on two key bills, out of which the National Assembly Standing Committee on Finance on Monday approved the proposed State Bank of Pakistan (SBP) Amendment Bill, 2021, with some amendments.

Through one of these amendments, the SBP governor will be required to ensure that he/she would not be serving any international financial institution for a period of two years. The governor will also be required to appear before the parliament, according to another proposed amendment.

Finance Minister Shaukat Tarin agreed to amend the clause on the proposed one-time five-year non-extendible tenure for a governor SBP and later told media persons that the matter would be raised with the IMF.

Meanwhile, Pakistan' finance ministry confirmed that the IMF has agreed to its request to reschedule the sixth review of the $6-billion Extended Fund Facility (EFF), after earlier stating that it would be held on January 12.

Asad Rizvi, Ex Treasury head at Chase Manhattan, said delay in the sixth review would hamper Pakistan's economic growth rate for the ongoing fiscal year.

"While the SBP is confident that the economy will expand and attain above 4% growth, the delay in rescheduling the 6th IMF review will slow down the pace of growth," tweeted Rizvi.

Completion of the review would make available SDR 750 million (about $1,059 million), bringing total disbursements under the EFF to about $3,027 million.

The IMF's EFF is key to bringing much-needed stability to Pakistan's currency that saw one of its worst years in 2021, depreciating close to 10% over the course of 12 months.

Inter-bank market rates for dollar on Tuesday

BID Rs 176.50

OFFER Rs 176.60

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 178.50 and 179.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 200 and 202, respectively.

Against UAE Dirham, the PKR gained 30 paisas for buying and 40 paisas for selling, closing at 48.90 and 49.30 respectively.

Against Saudi Riyal, the PKR gained 20 paisas for both buying and selling, closing at 46.90 and 47.30, respectively.

Open-market rates for dollar on Tuesday

BID Rs 178.50

OFFER Rs 179.50