The Pakistan rupee extended its gains against the dollar in the interbank foreign exchange market on Tuesday.

The local unit gained 20 paisas as the greenback was trading at Rs283.01 at the closing of the market, as against the closing of Rs283.21 the previous day.

In the open market, the buying of the dollar was recorded at Rs283.5 while it was quoted at 286.2 for selling at the time of filing the story.

Meanwhile, the total liquid foreign reserves of Pakistan reached US$12,206.4 million while the reserves held by the central bank stood at $7,040.8 million.

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 levy.

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 group. 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.