KARACHI
Pakistani rupee started the new week against the US dollar in the interbank market on back foot and depreciated by 8 paisas on Monday.
According to details, the rupee opened at 278.12 against the greenback in the interbank market and closed at 278.20, going down by 0.03 percent. The rupee appreciated by around nine paisas against the US dollar last week.
Pakistan marches towards stability as formal discussions with the International Monetary Fund (IMF) for a longer and larger program have been initiated. It is crucial to note that Pakistan achieved satisfactory results under the Standby Arrangement with the International Monetary Fund (IMF), meeting all seven QPCs for end-December 2023. However, the IMF has raised concerns that a potential resurgence in Pakistan’s social tensions, reflecting the complex political scene and high cost of living, could weigh on policy and reform implementation.
Meanwhile, Finance Minister Muhammad Aurangzeb said on Sunday that improving tax-to-GDP ratio, fast privatization of state-owned enterprises (SOEs) and overhauling the energy sector are priorities of the government. He made the remarks in Lahore during a panel discussion at the Pre-Budget Conference.
In a related development, workers’ remittances increased by 27.9 percent year-on-year in April to $2.81 billion, compared to $2.2 billion in the same month of last year, the SBP data showed. However, on a monthly basis, workers’ remittances fell 4.8 percent as compared to $2.95 billion in March 2024. On a cumulative basis, the total remittances in 10MFY24 stood at $23.85 billion as compared to $23.04 billion worth of inflows received in 10MFY23, depicting a rise of 3.5 percent on an annual basis.
In the same way, foreign exchange reserves held by the SBP significantly increased by $1.114 billion on a weekly basis, clocking in at $9.12 billion as of May 3. Total liquid foreign reserves held by the country stood at $14.46 billion. Net foreign reserves held by commercial banks stood at $5.34 billion.
