PKR bleeds by 2.08 rupees, hits 227/USD in intraday trade

July 21, 2022 (MLN): The Pakistani rupee (PKR) continued its downward journey as the currency lost over two rupees in the intraday trade, hitting 227 per USD at around 11:05 am on Thursday compared to the previous close of PKR 224.92 per USD. 

The local unit was quoted at 226.50/229 with trades being reported at 227 per USD. 

Delay in IMF tranche, political instability, and melting foreign exchange reserves have been pressurizing the local unit for so long. As per the latest development, the International Monetary Fund (IMF) is looking to assess Saudi Arabia’s commitment to financing Pakistan before the multilateral lender disburses fresh funds to the South Asian nation. 

The fund wants to ensure that Saudi Arabia will follow through with as much as $4 billion in funding to Pakistan to ensure Islamabad does not have a funding gap after the IMF loan. The transfer could include special drawing rights.

Earlier on Wednesday, speaking at a press conference, Minister Miftah Ismail said Pakistan will obtain financial aid from World Bank as well as $8bn from some friendly countries as soon as the deal with the IMF is finalized.

One friendly country would provide oil financing worth $1.2bn, while another country plans to invest $1 billion in the stock exchange, he added.

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