Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

The US dollar dropped Rs9.58 during Wednesday’s session, closing at Rs228.80 versus the rupee, down from Rs238.38 at Tuesday’s interbank close.

On the other hand, the greenback depreciated Rs14.50 in the open market, closing at Rs226, according to the Forex Association of Pakistan.

Following comments from an IMF official that Pakistan has met its final requirement by raising the tax on fuel prices on July 31, the Pakistan Stock Exchange (PSX) on Wednesday also experienced a bullish trend as the KSE-100 index rose 1016 points.

The KSE-100 index increased by 1016 points to trade at 41,208. Experts claim that the rupee’s progressive strengthening was also responsible for the market’s increased confidence.

Pakistan had raised the petroleum development levy (PDL), according to Esther Perez Ruiz, the IMF’s resident representative in Islamabad, completing the final previous action needed for the Fund’s combined seventh and eighth assessment.

“With the increase in PDL on July 31, the last prior action for the combined seventh and eighth review has been met. The [Executive Board] meeting is tentatively planned for late August once adequate financing assurances are confirmed,” she said in a statement.

Read more: Intraday trade: US dollar sheds Rs7.38 against Pakistani rupee

The $6 billion agreement, known as the Extended Fund Facility (EFF), was signed by Pakistan and the IMF in 2019.

However, since the IMF voiced concerns about Pakistan’s adherence to the agreement early this year, the disbursement of the combined seventh and eighth tranche has been put on hold.