Pakistani rupee gains strength courtesy IMF bailout package

PKR gained Rs2.38 against the US dollar at the start of business activities on Thursday.

KARACHI: Reflecting positively in the wake of approval of a $3 billion bailout programme by International Monetary Fund’s (IMF) on Wednesday, the Pakistani rupee gained Rs2.38 against the US dollar at the start of business activities on Thursday.

Earlier, on June 29, the IMF and Pakistan had reached a Standby Arrangement to ease the country’s financial crisis, unlocking crucial funding for the troubled economy. Following which Saudi Arabia and United Arab Emirates (UAE) deposited $2 billion and $1 billion with the State Bank of Pakistan, respectively.

Meanwhile, Finance Minister Ishaq Dar said on Thursday that the International Monetary Fund (IMF) had transferred $1.2 billion to the central bank’s account.

The $3bn short-term financial package courtesy the IMF would give the ailing economy a much-awaited respite as it teeters on the brink of default.

The press release stated that the new programme would provide a policy anchor to Pakistan for addressing “domestic and external imbalances” and a framework for financial support from multilateral and bilateral partners.

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