Pakistani rupee makes sharp gain against US dollar

KARACHI: The Pakistani rupee on Thursday appreciated against the US dollar in the interbank market, according to the State Bank of Pakistan (SBP) report.

In the interbank market, the rupee closed at Rs267.34 appreciating by 2.10 against the dollar. The greenback had closed at Rs269.44 a day earlier.

The currency has depreciated by 23.3% during the ongoing fiscal year against the greenback. The US dollar has gained over Rs30 in the interbank market since the Exchange Companies Association of Pakistan (Ecap) removed an unofficial cap on the exchange rate.

The rise is attributed to the resumption of $7 billion Extended Fund Facility (EFF) stalled for months.

The lender and Pakistan moved closer to the revival of their loan prgramme as Islamabad has agreed to several conditions including increasing energy prices and improve tax collection, as demanded by the IMF.

Read More: Govt to hike power tariff by Rs7.91 to revive IMF package

Sources told ARY News that the federal cabinet has approved the revised circular debt management plan through circulation, under which the government will end subsidies and jack up electricity price by Rs7.91 per unit in four quarterly adjustments – Feb-March 2023, March-May, June-August and September-November.

Sources further claimed that the federal cabinet also approved the withdrawal of electricity subsidy of Rs65 billion given to the exporters and farmers, with effect from March 2023. The subsidy of Rs12-13 paise per unit on electricity given to export sector will be withdrawn, they added.