Following a slight recovery in the early hours, the rupee was back to losing ways and depreciated slightly against the US dollar in the inter-bank market on Friday.
As per the State Bank of Pakistan (SBP), the local currency closed at 284.65, down 0.23 or 0.08%.
This comes a day after the rupee registered significant gains against the US dollar, settling at 284.42 in the inter-bank market after a gain of Rs3.43 or 1.21%, on the back of news that the IMF has received assurance from Saudi Arabia of helping out Pakistan. The IMF is seeking such assurances before it revives its bailout programme for the South Asian country.
Minister of State for Finance Aisha Ghaus Pasha on Thursday informed that Saudi Arabia has told the lender it will provide a $2-billion loan to Pakistan.
Pasha said Islamabad was also in talks with the United Arab Emirates (UAE) to secure its assurance for foreign reserve deposits in the central bank.
In another development, Finance Minister Ishaq Dar in a meeting with US Ambassador Donald Blome informed the envoy of progress in talks held with the IMF and reiterated the commitment of the government to complete the programme.
“Comments from Saudi Arabia have led to a positive reaction by both currency and equities market,” Fahad Rauf, Head of Research at Ismail Iqbal Securities, told Business Recorder.
“However, there are concerns amid reports that Finance Minister Ishaq Dar and his team would not visit the US to attend the IMF-World Bank spring meetings. This has irked market sentiment,” he added.
Islamabad has been engaging with an IMF mission since early February to negotiate a series of policy measures to secure $1.1 billion funding for the cash-strapped economy.
The funds are part of a bailout package the IMF approved in 2019, which analysts say is critical for Pakistan to avert defaulting on external payment obligations.
The deal will also unlock other bilateral and multilateral financing avenues for Pakistan to shore up its foreign exchange reserves, which have fallen to four weeks’ worth of import cover, and help it steer out of a balance of payment crisis.
Inter-bank market rates for dollar on Friday
BID Rs 284.50
OFFER Rs 286.50
Open-market movement
In the open market, the PKR gained 3 rupees for both buying and selling against USD, closing at 288.50 and 291.50, respectively.
Against Euro, the PKR gained 3 rupees for buying and 2 rupees for selling, closing at 311 and 315 respectively.
Against UAE Dirham, the PKR gained 55 paisa for buying and 50 paisa for selling, closing at 78.75 and 79.50, respectively.
Against Saudi Riyal, the PKR gained 50 paisa for both buying and selling, closing at 76.30 and 77.00, respectively.
Open-market rates for dollar on Friday
BID Rs 288.50
OFFER Rs 291.50