The Pakistani rupee ended the week with a minor gain against the dollar in the interbank foreign exchange market on Friday.
The greenback shed 26 paisas and was trading at Rs282.53 at the closing of the market, as against the closing of Rs282.79 the previous day.
According to dealers, the local currency marked the tenth consecutive win against the dollar in the interbank.
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.
Meanwhile, the State Bank of Pakistan’s foreign currency reserves stood at $6.9 billion during the week ending December 15, down by $136 million from the previous week’s total of $7.04 billion. The central bank attributed debt repayment as the reason for the decrease in reserves.
The total liquid foreign currency reserves for the country, inclusive of reserves held by commercial banks, amounted to $12,06 billion, with net reserves held by commercial banks standing at $5.16 billion.
It is pertinent to mention that the World Bank’s board of executive directors approved $350 million in financing for the Second Resilient Institutions for Sustainable Economy (RISE-II) operation in Pakistan onDecember 20.
“Pakistan needs urgent fiscal and structural reforms to restore macroeconomic balance and lay the foundations for sustainable growth,” says Najy Benhassine, World Bank Country Director for Pakistan. “RISE-II completes a first phase of tax, energy and business climate reforms geared to raising additional revenues, improve the targeting of expenditures and stimulate competition and investment.”
