KARACHI
Pakistani rupee appreciated by nine paisas against the US dollar in the interbank market for the second straight session on Friday.
According to details, the rupee opened at 278.30 against the greenback in the interbank market and closed at 278.21, going up by 0.03 percent. The rupee appreciated by 18 paisas during the previous session, while it remained stable this week, as it closed at the same rate last week against the greenback.
The rupee has largely been stable around this rate for months with Pakistan eager to sign up for another bailout program with the International Monetary Fund (IMF) after its previous $3-billion Stand-By Arrangement (SBA) ended. An IMF mission, led by Nathan Porter, began discussions, but details are yet to be finalized. The new IMF program is also being seen as crucial to maintain currency stability.
The government has proposed to the International Monetary Fund (IMF) to increase income tax exemption threshold up to Rs1 million for salaried class, according to media reports. There is a proposal to rationalize the tax rates for individuals by removing the salaried/ non-salaried distinction and reducing the number of rate slabs.
Demand for the greenback has picked up in recent days amid a widening of the trade deficit by 22 percent year-on-year in April. On the other hand, the foreign exchange reserves, held by the SBP, have continued to improve, rising past $9 billion.
On the other hand, foreign exchange reserves held by the SBP increased by $22 million on a weekly basis, clocking in at $9.16 billion as of May 17, data released on Thursday showed. Total liquid foreign reserves held by the country stood at $14.59 billion. Net foreign reserves held by commercial banks stood at $5.43 billion. The central bank did not specify a reason for the increase in the reserves. Last week, Pakistan’s central bank reserves increased by $15 million.
