KARACHI
Pakistani rupee strengthened against the US dollar in the interbank market by 12 paisas on Tuesday.
According to details, the rupee opened at 278.24 against the greenback in the interbank market and closed at 278.12, rising by 0.04 percent.
The rupee appreciated by around 18 paisas against the US dollar last week. The local unit closed at 278.21 against 278.39 it had closed the week earlier, as per the SBP.
Finance Minister Senator Muhammad Aurangzeb said during a press conference on Tuesday that the Monetary Policy Committee (MPC) of the SBP may consider the interest rate cut in June or July as inflation is showing signs of decline.
The minister said that the country’s economic indicators are going in the right direction and have increased the confidence of foreign investors in the economic governance of Pakistan. Aurangzeb said that export-led growth, Foreign Direct Investment (FDI), and excess to capital were the priority of the government.
He also highlighted the positive trend in foreign exchange reserves.
To note, the central bank has more than doubled its foreign exchange reserves from January 2023 ($3.1 billion) to around $8bn on May 02, 2024, despite the repayment of a $1bn Eurobond last month. The reserves will further rise to about $9bn this week following the final trance of the International Monetary Fund (IMF).
While the country’s official reserve assets, including foreign currency reserves, reserve position in funds, Special Drawing Rights (SDRs), gold, and other reserve assets are stable at $15bn and it would increase further, he added.
On the IMF, the finance minister said that an IMF team is scheduled to visit Pakistan this month, which will further pave the way to strengthen economic policies and frameworks.
Meanwhile, it was reported by media that Saudi Crown Prince Mohammed bin Salman is expected to arrive next week for crucial talks with Pakistani leadership, including the signing of several memorandum of understanding aimed to bolster Saudi investment in various sectors including agriculture, mining, human resource, energy, chemicals, and maritime.
