The rupee was marginally up against the dollar in the interbank market on Thursday as it gained 43 paisas in the early morning trade. The local currency was being traded at Rs294.50.

The rupee fell by Rs3.42 against the dollar on Wednesday, according to the State Bank of Pakistan. The local currency closed at Rs294.93.

Pakistan finally managed to consolidate its foreign exchange reserves with the approval in mid-July of a $3 billion loan from the International Monetary Fund (IMF) and additional assistance from China, Saudi Arabia and the United Arab Emirates.

One of the conditions of the IMF bailout was an end to subsidies on energy, leading to a sharp rise in the cost of electricity, which affects the competitiveness of textile companies.

More to follow…