The dollar fell against the rupee in the interbank market on Friday, according to the central bank as the South Asian country takes steps to improve the economy by selling loss-making state-owned enterprises.

The greenback closed at Rs277.73 after depreciating by 21 paise in the interbank on the last day of the business week, the State Bank of Pakistan said.

Moreover, the Euro settled at Rs298.94; the Japanese Yen at Rs1.8200; the Pound at Rs359.54; the Dirham closed at Rs75.61; the Riyal at Rs73.93; and the Australian dollar at Rs184.18.

Cash-strapped Pakistan is looking to offload a 51-100% stake in debt-ridden PIA to raise funds and reform bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund programme.

In May this year, Finance Minister Muhammad Aurangzeb clarified that there was no such thing as a “strategic SOE” and vowed to accelerate the privatisation agenda.

The Privatisation Commission attracted only Rs10 billion bid for the national flag carrier against the valuation of Rs85 billion.

On Thursday, a letter from an overseas Pakistani group to the government surfaced in the media. The firm has made an offer exceeding Rs100 billion for the national airline.

According to the Al-Nihang’s Group, his proposal to revitalise PIA includes enhancing its operational capabilities, expanding revenue streams, and positioning the airline as a leader in the regional aviation market.

The Al-Nihang’s Group has set seven conditions, including assuming responsibility for all existing PIA liabilities, estimated at Rs250 billion.

Earlier on Friday, SBP Governor Jameel Ahmed stressed the need for increasing credit allocation to projects that enhance climate resilience and promote environmentally sustainable growth.

“It is essential that we leverage our financial sector’s potential to align with the global shift toward sustainability, thereby contributing to both our national priorities and international commitments,” he said at an event.

He added that the SBP has introduced refinancing schemes for renewable energy, disbursing Rs. 94.7 billion by end of June 2024, financing more than 4,500 renewable energy projects with a cumulative energy generation capacity of almost 2,061 MW.