IMF boosts Pakistani rupee with $1.1 billion disbursement

The Pakistani rupee showed resilience against the US dollar in the interbank market, closing the week on a positive note with a nine paisa appreciation on Friday. Starting the week at 278.30 against the greenback, the rupee closed at 278.21, marking a 0.03% increase. This week's performance follows a slight decline against the US dollar last week, where it settled lower by Re0.08 or 0.2%. Despite this, the local currency has shown an overall improvement of Rs7.69 against the greenback in the current fiscal year 2023-24.

In April, the rupee experienced a depreciation of Rs0.36 after a series of gains in the preceding months. However, the recent positivity surrounding the IMF's immediate disbursement of $1.1 billion to Pakistan under the $3 billion standby arrangement has provided a boost. This injection of funds is expected to reflect in the State Bank of Pakistan's reserves by May 3, 2024.

Furthermore, the country's foreign exchange reserves have seen a modest increase, with the SBP's reserves rising by $25 million on a weekly basis to reach $8 billion as of April 26. The total liquid foreign reserves held by Pakistan currently stand at $13.3 billion, with commercial banks holding $5.3 billion in net foreign reserves.

In conclusion, the Pakistani rupee's recent performance reflects a mix of fluctuations and stability, with external support from institutions like the IMF playing a crucial role in bolstering the country's financial position.