The local currency gained 51 paisas against the greenback and was trading at Rs282.50 on intra-day trading previously closed at Rs283.01 on Tuesday.

Since December 12, the rupee has been appreciating. According to the caretaker government, the local currency started gaining strength after a crackdown on illegal money exchangers and hoarders.

Last week, the International Monetary Fund resident representative in Pakistan denied media reports that the lending body is planning to ask Pakistan to increase taxes on salaries and business income and increase the maximum threshold for petroleum levies.

Media reports had been circulating stating that the IMF asked Pakistan to cut the number of tax slabs for the salaried and business class from the existing seven to four, increasing tax incidence on the middle and upper-middle income groups. There have also been reports of an increase in the maximum petroleum development levy.

“There are no plans at this time,” Esther Perez Ruiz, IMF’s resident representative in Pakistan, told Reuters in an email.