KARACHI: The rupee continued to extend gains against the US dollar in interbank trade on Thursday, appreciating by 27 paisa.
According to the Forex Association of Pakistan (FAP), the rupee appreciated Rs1.50 from the previous day’s close of Rs205.40 to reach Rs203.90 by 1pm.
The FAP’s closing rate of the previous session was higher than the State Bank of Pakistan’s rate of Rs205.12.
By the closing time on Thursday, the greenback was being traded at Rs204.85 in the interbank market, up 0.13 per cent.
According to analysts the rupee had been showing rapid recovery against the dollar in recent days amid hopes that the IMF would soon release funds of around $2 billion.
On Wednesday (yesterday), the National Assembly approved the finance bill for the upcoming fiscal year, with some major changes relating to taxation and levy on petroleum products in line with the government’s commitment to the IMF.
Earlier on Tuesday, Pakistan had received the Memorandum of Economic and Fiscal Policies (MEFP) from the IMF for the combined seventh and eighth reviews of its $6 billion loan programme, which has been stalled since April.
According to the MEFP, Pakistan will have to take at least two more “prior actions” to secure the two combined tranches by the end of July or early August. The prior actions include the passage of the federal budget as agreed to with the IMF and presented in the National Assembly on June 24 and present a memorandum of understanding duly signed by the provincial governments to jointly provide about Rs750bn cash surplus to the centre.
