The rupee has strengthened by Rs 2.27 against the dollar in the interbank market following the announcement of a 4.2 billion aid package for Pakistan by Saudi Arabia.
According to traders and bankers, the Saudi package will increase the country’s foreign reserves, which have been declining for the past few months.
The dollar was at a record high of Rs 175.27 in the interbank market yesterday. The local currency has depreciated by about 13.6 per cent since May.
In the middle of the day after the Saudi package, the dollar was recorded at Rs 173 in the interbank market.
Samad Hashmi, executive director of BMA Capital, told Reuters that the rupee’s appreciation was the result of an announcement about Saudi funding, which is widely seen as a positive surprise to foreign investors. Required to strengthen account.
Chad Manhattan Bank’s former Treasury head Asad Rizvi said Saudi Arabia had agreed to provide 1.2 billion in oil and 3 3 billion in cash on deferred payments, while the REER index fell for the fourth consecutive month. Tax reached 95.9.
Federal Information Minister Fawad Chaudhry announced on Tuesday that Saudi Arabia had agreed to resume its financial aid to Pakistan, which included a 3 billion safe deposit and 1.2 billion to 1.5 billion in oil. Includes late payments of supply.
Pakistan has been in talks with the International Monetary Fund for the past two weeks to secure a 1 billion tranche, but its sixth review has been fruitless.
The Saudi government will immediately deposit 3 billion in Pakistan’s account for one year and maintain it until at least the completion of the IMF program in October 2023, a government official said.
Prime Minister Imran Khan thanked Saudi Arabia.
He said on social networking site Twitter that Saudi Arabia has always stood by Pakistan in difficult times, including now when the world is facing rising commodity prices.
Prime Minister Imran Khan added that in 2018, Saudi Arabia provided 3 billion in foreign exchange assistance and 1.2 billion in deferred payments for oil imports.