The Pakistani rupee made a massive comeback in the open market against the US dollar on Thursday as dealers claimed it remains short in supply. So what to expect next on the US dollar rate?

Currently, the US dollar is being traded at Rs298 in the open market, as compared to 311-314 a day ago.

Currency dealers, while speaking to Business Recorder, claimed that the USD remains in short supply. “Customers are not approaching the market to sell their currency.”

They said the market would “soon find its equilibrium”.

On May 30, the International Monitory Fund (IMF) asked the Pakistan government, which is seeking a bailout programme, needs to fix the currency market in order to resume the negotiations.

However, in case Pakistan leaves the programme incomplete, it would trigger a shockwave resulting in further devaluation of the rupee. The programme, which is expiring in June, has been delayed since November. There’s about $2.5 billion left to disburse from the $6.5 billion programme.

It is reported that government would approach the Washington-based lender for a new agreement after the budget 2023-24.

The new bailout programme will likely be for more than three years and the government would be in desperate need of the programme by September as Pakistan needs to pay around $9-11 billion dollars in repayments of external debt by December 2023, sources said.