Lahore: The value of the Pakistani rupee has strengthened against the US dollar recently — with the latter falling in value over the past six months to PKR 155 per dollar, a news source reported.
Previously, the dollar had been trading at PKR 164.05 on the interbank market in June, but today this value has fallen to PKR 154. 95. As a result, the value of foreign debt owed by Pakistan has also managed to decrease by PKR 976 billion.
This appreciation in the value of the Pakistani rupee has been attributed to the increase in remittances and dollar inflows in the country, and the experts predict that this trend could continue for some time.
Last week, Moody’s Investors Service affirmed Government of Pakistan’s local and foreign currency long-term issuer and senior unsecured debt ratings at B3, and changed its outlook from negative to stable. This move was made under the expectation that the balance of payments’ dynamics will continue to improve, as long as they are “supported by policy adjustments and currency flexibility” within the country.
Additionally, the Asian Development Bank last week approved of a USD 1.3 billion policy based loan for Pakistan. Out of the total amount, USD 1 billion was approved as immediate budget support to the country, and is expected to strengthen its economy. The remaining USD 300 Million has been earmarked for reforms within Pakistan’s energy sector.
