KARACHI: According to reports Sunday citing traders and analysts, the rupee is anticipated to begin its recovery drive against the US dollar as a result of the government’s efforts to secure the International Monetary Fund’s (IMF) bailout programme having boosted the market’s positive sentiments and due to an increase in dollar supply.
The government appears committed to take certain preliminary steps that could assist in fulfilling the IMF requirements to finalise the state-level agreement with the international lender.
The local currency increased by around 2.18% against the dollar in the interbank market during the previous week, rising from 275.30 on Monday to 269.28 on Friday.
Islamabad and the IMF did not reach an agreement to release the funds from a $6.5 billion bailout during the fund’s 10-day visit, but both sides agreed to continue protracted negotiations because the South Asian country’s deepening economic crisis does not appear to have a quick fix.
In order to get additional aid, prevent default, and restore its foreign currency reserves, which have fallen to $2.9 billion, Pakistan must reach an agreement with the IMF for additional funding.
