As per the State Bank of Pakistan (SBP), the rupee closed at 219.71 after depreciating Re 0.82 or 0.37% registering a decline for the fifth straight session against the US dollar.
The Pakistani rupee appreciated by Rs. 2.14 against the US dollar after which its price has become Rs. 223.50
During the eighth business session of the Interbank, the US dollar became cheaper by Rs. 15.75. according to the sources, the devaluation of the dollar will reduce Pakistans debt by 1950 billion rupees.
The government requires to pay $1 billion on bonds maturing in December. It has interest payments worth nearly $600 million for the 2022-23 fiscal year however the next full bond redemption is not until April 2024.
All the major credit rating agencies have lowered their outlook since June all rate the country as highly speculative and risky. Pakistani officials, in this regard, said the country will be able to meet short-term repayments.
Meanwhile, a South Asian country, Sri Lanka, has defaulted on its debt due to which the president and government have been toppled in widespread protests caused by the economic crisis. Though, Pakistani officials say there are huge differences between Pakistan and much smaller Sri Lanka.
Moreover, the Pakistani rupee showed an appreciation of almost three rupees against the US dollar in the interbank market on Tuesday morning chiefly because the International Monetary Fund (IMF) revived the long-awaited bailout programme.
As per the details, the rupee appreciated 219 against the US dollar as compared to the previous close of 221.92 per USD.
The rupees recovery comes as the International Monetary Fund (IMF) gave nod to the seventh and eighth reviews of Pakistans Extended Fund Facility Programme (EFF).
The Fund stated that the executive board finalized the combined seventh and eighth reviews of the extended arrangement under the Extended Fund Facility (EFF) for Pakistan.
The boards decision allows for an immediate disbursement of SDR 894 million (about $1.1 billion), bringing total purchases for budget support under the arrangement to about $3.9 billion, read the statement.