PKR ends week with 10th consecutive decline against USD

In a continued trend, the Pakistani rupee wrapped up the week with losses against the US dollar, marking the tenth consecutive session of depreciation in the interbank market.

According to the State Bank of Pakistan (SBP), the local currency depreciated by 0.31% on Friday, settling at 284.31, reflecting a decrease of Re0.88.

This decline continued from the previous day when the rupee had depreciated by 0.28%, ultimately settling at 283.43 against the US dollar.

During the week ended on November 3, the PKR depreciated by 3.74 rupees against the US dollar to settle at PKR 284.31, as compared to the previous week’s closing of PKR 280.57 per USD.

The Pakistani rupee also witnessed a similar weakening trend in the open market against the US dollar on Friday. Currency dealers reported exchange rates of 285 for selling and 282 for buying.

Data provided by the Exchange Companies Association of Pakistan (ECAP) indicated that at the close of trading on Thursday, the local currency had been valued at 284.5 for selling and 281.5 for buying.

In a related development, Pakistan and the International Monetary Fund (IMF) have been engaged in talks regarding the first review of the $3 billion Stand-by-Arrangement (SBA). The talks come as the interim government in the center claims to have successfully met all the stipulated targets outlined in the agreement.

According to a report by Profit, the IMF review mission has praised the government’s efforts to stabilize the economy. Caretaker Federal Minister for Finance Dr. Shamshad Akhtar met with IMF mission led by IMF Mission Chief Nathan Porter on Thursday.

The meeting discussed progress on the Standby Arrangement (SBA) and fiscal measures to improve the economic situation. They also discussed reforms, measures by the Federal Board of Revenue (FBR), and strategies to address the circular debt issue.

The IMF mission chief commended Pakistan’s commitment to meeting targets and the importance of ongoing efforts for economic stability. Pakistan has taken measures, including increasing electricity and gas prices, to meet IMF conditions.

The FBR achieved its tax collection target, a positive sign for meeting fiscal responsibilities. The IMF mission’s two-week itinerary includes the first review of the standby arrangement, and a $700 million tranche is expected if Pakistan’s performance is satisfactory.