ISLAMABAD – Pakistan Currency and Economy is stabilising, InternationalMonetary Fund Report has revealed, media has reported.
Volatility in the Pakistani rupee has diminished and it is more stable now,helped by improved foreign exchange reserves and a positive impact from amarket-determined exchange rate, the International Monetary Fund said.
“While the authorities’ economic reform programme is still in its earlystages, there has been progress in some key areas. The transition to amarket-determined exchange rate has started to deliver positive results onthe external balance, exchange rate volatility has diminished, monetarypolicy is helping to control inflation, and the State Bank of Pakistan hasimproved its foreign exchange buffers,” the IMF said in its latest noteafter staff consultation, Khaleej Times has reported.
The rupee has gained 4 per cent against the UAE dirham in the last threemonths, rising from 44.49 on June 28 to 42.7 on September 28.
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It witnessed severe volatility in the last two years, weakening from 28.7on September 27, 2017 to 42.7 on September 28, 2019. The rupee has alsoreceived support from the decline in the trade deficit, which shrank nearly37.6 per cent in the first two months of the current fiscal year.
Provisional central bank data figures showed that the trade deficit fell to$3.97 billion in July-August from $6.37 billion over the correspondingmonths last year. Pakistan’s foreign exchange reserves also stand at astable level, reaching $8.465 billion in the week ending September 20compared to $8.6 billion in the previous week, the central bank said onThursday.
