KARACHI: The US dollar lost more ground against the Pakistani rupee on Wednesday, despite the country suffering severe economic losses as a result of devastating floods.Authorities from the government estimate that the flood damage cost more than $10 billion. They also said that the globe had a responsibility to assist the South Asian nation in coping with the repercussions of man-made climate change.
The approval of the essential $1.17 billion tranche by the Executive Board of the International Monetary Fund (IMF) was a key driver of the rupee’s upward trajectory.
Pakistan is anticipated to get funding from global and bilateral organisations in addition to friendly nations with the restart of the IMF programme.
The rupee was trading at 218 per dollar, up 2.12 from yesterday’s finish of 220.12, after intraday trade in the interbank market. Dr. Khaqan Hassan Najeeb, an economist and former consultant to the federal ministry of finance, stated that while the IMF programme’s restart would undoubtedly help Pakistan increase its dwindling foreign exchange reserves, the flood destruction has heightened the country’s need for external assistance.
This is expected to happen in the next months, along with a predicted slowdown in agricultural expansion and a corresponding decline in demand from rural areas.The analyst added that range-bound trading is anticipated on the Pakistan Stock Exchange while the nation assesses the effects of the damage and the slowdown in the economy.