Local unit closes at Rs206.87 against US dollar.
KARACHI: Pakistani rupee recovered on Tuesday after Finance Minister Miftah Ismail announced that the Government of Pakistan has received the Memorandum of Economic and Financial Policies (MEFP) from the International Monetary Fund (IMF) for the seventh and eighth reviews.
Investors cheered this critical development, which signals that the two sides have almost reached an agreement. The draft MEFP is a prerequisite to paving the way toward striking a staff-level agreement.
According to the State Bank of Pakistan (SBP), the local currency gained Rs1.07, or 0.52%, to close at Rs206.87 against the US dollar in the interbank market.
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Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by a massive 31.31% (or Rs49.33) compared to the previous fiscal year’s close at Rs157.54.
The rupee has maintained a downward trend for the last 13 months. It has lost 35.85% (or Rs54.6) to date, compared to the record high of Rs152.27 recorded in May 2021.