Pakistan's rupee witnessed another gain against the US dollar in the inter-bank market on Wednesday, appreciating 0.23%.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.23 after a day-on-day appreciation of 40 paisas or 0.23%. The appreciation comes after the rupee gained 0.03% against the dollar on Tuesday as well.

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 registers marginal gain against US dollar

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 government has already tabled the Finance (supplementary) Bill and the State Bank of Pakistan (SBP) Amendment Bill 2021 in parliament as the prior conditions needed for the sixth review of the $6-billion EFF to get cleared by the IMF’s executive board.

“The two bills are in process, and will be passed, paving way for the IMF funding,” Saad Hashmey, Executive Director at BMA Capital, told Business Recorder.

Hashmey added that the newly-introduced reforms in the power sector would also help in curbing fiscal deficit.

“The government is moving in the right direction from an economic perspective."

He added that after the IMF approval, the government would move towards other international lenders and may issue Sukuk bonds.

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.

Hashmey added that the import bill, a key reason behind rupee depreciation, will go down amid measures taken by the central bank.

“The current account deficit (CAD) will fall below $1 billion from March-April," he added.

"The Real Effective Exchange Rate (REER) remains below 100, showing there is space for improvement for the Pakistani rupee."

Inter-bank market rates for dollar on Wednesday

BID Rs 176.15

OFFER Rs 176.25

Open-market movement

In the open market, the PKR gained 50 paisas for both buying and selling against USD, closing at 178 and 179, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 200.50 and 202.50, respectively.

Against UAE Dirham, the PKR gained 10 paisas for both buying and selling, closing at 48.80 and 49.20, respectively.

Against Saudi Riyal, the PKR gained 10 paisas for both buying and selling, closing at 46.80 and 47.20, respectively.

Open-market rates for dollar on Wednesday

BID Rs 178

OFFER Rs 179