Karachi: Rupee gained ground against dollar as market was hopeful of positive outcome of ongoing talks between government and International Monetary Fund (IMF). In interbank market, rupee appreciated Rs 2.95 or 1.08 percent against dollar to close at 273.33, according to State Bank of Pakistan up from yesterday’s close of 276.28.

Meanwhile, domestic unit closed at 279 in open market. Islamabad began its formal talks with global lender last month to discuss an economy-rescuing plan that also includes an instalment of $ 1.1 billion loan payment from $ 6.5 billion bailout package, which was designed to ward off Pakistan’s economic meltdown in 2019. To meet IMF’s demand for much-needed loan, government has already hiked up price of petroleum products which will move already record-high inflation upwards and increase rates of power, gas and other commodities that are also in pipeline. State Bank of Pakistan-held foreign exchange reserves are at critical level of around $ 3 billion, for week ended January 27, which is enough to cover imports for less than month.

Published in The Daily National Courier, February, 09 2023

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