Pakistani Rupee Gains Ground Against US Dollar: Positive Outlook Amid IMF Agreement and Financial Support

In a positive turn of events, the Pakistani rupee showed a strong performance against the US dollar in the interbank on Monday. According to experts in foreign exchange, the Pakistani currency gained 67 paisa and by around 10:30 am, it was being traded at Rs284.30 in the interbank market.

The greenback, on the other hand, was being traded at Rs285.50 in the open market, as reported by currency dealers. ​

The good news about the Pakistani Rupee getting stronger is partly because the International Monetary Fund (IMF) and Pakistan recently agreed on something important. In November, the IMF announced that they had successfully concluded the first review of the billion Stand-By Arrangement (SBA). This agreement is a crucial step in securing financial support for Pakistan.

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The next important milestone is the upcoming executive board meeting of the IMF, scheduled for December 07. During this meeting, the staff-level agreement with Pakistan is expected to be approved. Following this approval, approximately US0 million is anticipated to be released to Pakistan, bringing the total disbursements under the program to nearly US.9 billion.

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In addition to the IMF support, Pakistan is likely to receive financial assistance from other sources. Gulf countries are expected to contribute billion, while Exim Bank is set to provide .2 billion. China has committed to rolling over the debt for an additional two years.