In a statement released on Wednesday, analysts led by Kamakshya Trivedi predicted that “the recent appreciation of the Pakistani rupee will likely be short-lived, given soaring interest costs and only short-term arrangements with the IMF and bilateral financing to support the external balance.”

“The market will continue to require a premium for Pakistan’s rupee ahead of elections,” it stated.

Last week, PKR ended its 28-day historic streak of an upward trajectory against the USD, losing 1.18 rupees against the greenback.

The decrease was attributed to banks’ limited US dollar liquidity, which prevented them from quoting forward rates.

The government’s administrative initiatives combined with the crackdown on illicit dollar outflows resulted in impressive gains for the rupee.

Transparency is also being improved by the State Bank of Pakistan’s (SBP) reforms, which consolidated and changed many kinds of exchange businesses into a single category with a clear mission and more capital requirements.

Today, in the interbank market, the dollar is now trading at PKR 279.75 at least 13 paisa down from the previous close.