USD/PKR: Rupee More Stable as IMF Approves Second Tranche

The Pakistani currency witnessed no change after IMF approved the second tranche of $452 million. On the foreign exchange market, during last week’s trading activity, Pakistani Rupee closed slightly lower against the US dollar settling at 154.80. Year-to-date Rupee has gained +10.88% following the Pakistan’s central bank move to increase the US dollar supply since the beginning of the year

During early Asia trading hours, the USD/PKR exchange rate was seen stabilizing at 154.90. The State Bank of Pakistan (SBP) reported that during the previous week’s trading session the Pakistani Rupee was traded at Rs 155.00 against Rs 154.70 in the currency market.

In other new, the International Monetary fund IMF approved the second bailout package confirming the Pakistan’s economic reforms are “on track.” The IMF approved a three-year loan package worth $6 billion for Pakistan to revive its lackluster economy. So far, Pakistan was able to access a total disbursements of $1,440 million.

David Lipton,  deputy managing director said “Pakistan’s programme is on track and has started to bear fruit,” but warned Pakistan that they need to continue with the reforms to ensure sustainable growth over the long term. The IMF official added that “risks remain elevated…Strong ownership and steadfast reform implementation are critical” to promote growth.

According to a new World Bank study, the debt in emerging markets has climbed to $5 trillion, the highest recorded data.The World Bank report also signaled that the global low interest environment doesn’t guarantee protection against a financial crisis.

The benchmark equity index Karachi Stock Exchange KSE-100 Index closed up 0.44% at 40,832 on Friday, and was seen trading on Monday morning Pakistan trading hours at 41,461 up 1.33%. Year-to-day the Pakistan stock exchange market posted double-digit returns of 10.16%. The Pakistan 10-year government bond yield gapped higher and closed at 11.249 versus 11.000 previous closing rate.

On the other hand, the dollar index settled at 97.68 on Friday.

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