PKR jumps by over four rupees in early trade

August 10, 2022 (MLN): Extending its gain further, the Pakistani rupee (PKR) on Wednesday gained over four rupees in the interbank market with trades being reported at 220 against the greenback compared to the previous close of 224.04 per USD.

The local unit was quoted at 221.84/222.34 [10:34 PST] while in the open market, PKR was traded at 215/217 per USD. 

Owing to the improving economic fundamentals, the domestic unit is keep on appreciating against the dollar. Along with better-performing macros, the export proceeds have played a vital role in the ease in dollar demand.

On the upside, the United Arab Emirates intends to invest $1 billion in Pakistani companies across various sectors, the state news agency (WAM) reported citing an official source in Abu Dhabi.

The UAE is keen to continue cooperation with Pakistan "in various fields, which include gas, energy infrastructure, renewable energy, health care," the agency added.

Meanwhile, Finance Minister Miftah Ismail on Tuesday said that Pakistan has averted a Sri Lanka-like situation. 

In an interview with CNBC, he stated that there were concerns regarding Pakistan getting into Sri Lanka-type situation but with significant change measures, the situation has been avoided.

To recall, last week, Dr. Esther Perez Ruiz, IMF’s Resident Representative for Pakistan said, "Pakistan has completed all prior actions for loan review."

She went on to say that the country has met its last prior action of the IMF for the combined 7th and 8th review after increasing the petroleum development levy (PDL).

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