On Monday, the rupee continued to strengthen for a fourth consecutive day, rising a meagre 0.14 per cent against the US dollar on hopes that the International Monetary Fund (IMF) bailout plan will be reinstated.
In relation to the US dollar, the local currency increased by Rs0.29, or 0.14 per cent, to settle at Rs204.56. Since falling as low as Rs211.93 on June 22, 2022, the currency has increased by Rs7.37.
The market now anticipates a relatively easy restart of the programme, which coincides with Pakistan’s efforts to meet various IMF-imposed requirements.
Following discussions between the two parties, Pakistan received the IMF Memorandum of Economic and Financial Policies (MEFP) last week.
In addition, Pakistan’s Prime Minister Shehbaz Sharif has stated that the IMF will combine the seventh and eighth assessments of Pakistan’s Extended Fund Facility (EFF) and distribute around $1.9 billion in the coming days.
Experts claim that the most recent developments in the IMF programme, which is largely seen as being essential to Pakistan’s economy, have enhanced investor sentiment.
