• The exchange rate witnessed a gain of Rs1.95 against the dollar to reach Rs217.97, from Friday’s closing of Rs219.92.
• The Asian Development Bank (ADB) announced it would provide aid of around $2.5 billion for flood relief operations.
• The total imports during the first quarter stood at $16.3 billion, compared with $18.71 billion recorded during the same period of last fiscal year.

KARACHI: The Pakistani rupee extended gains for the 12th consecutive session against the dollar on Monday, as positive sentiments dictated the uptrend in the market, dealers said.

The exchange rate witnessed a gain of Rs1.95 against the dollar to reach Rs217.97, from Friday’s closing of Rs219.92 in the interbank foreign exchange market.

Currency experts said that the market remained bullish on the back of prevailing positive sentiments after Finance Minister Ishaq Dar said that Pakistan will not seek debt restructuring from Paris Club creditor nations, as he sought to restore market confidence after a credit rating downgrade.

Additionally, expected foreign inflows from multilateral institutions further boosted the investors’ confidence, they added.

The Asian Development Bank (ADB) on September 5, announced it would provide aid of around $2.5 billion for relief operations in the wake of devastating floods that have caused catastrophic damage in Pakistan.

The global oil prices fell on Monday, ending five straight days of gains, as investors looked to slowing economic activity in China, the world’s biggest crude importer, which revived concerns about a global recession and falling global fuel demand.

The trade deficit of Pakistan recorded a decline of 21.42 percent to clock in at $9.2 billion in the first quarter of the fiscal year 2023, compared with that of $11.7 billion recorded during the same period of the fiscal year 2022.

The total imports during the first quarter stood at $16.3 billion, compared with $18.71 billion recorded during the same period of last fiscal year. The exports rose to $7.1 billion, from $6.99 billion in the first quarter of last year.

However, the rupee’s current rally is likely to be short-lived in the absence of key economic fundamentals. The foreign exchange reserves of the country have been on a constant decline due to external debt repayment.

The foreign currency reserves held by the State Bank of Pakistan (SBP) fell by $106 million to reach $7.89 billion during the week ended September 30, compared with $8 billion on September 23.

The overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13.58 billion. The Net reserves held by banks amounted to $5.68 billion.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs13.02 or 6.40 percent from Rs204.85 to the dollar on June 30, 2022, to the current level of Rs217.97.

At the open market, the buying and selling of the dollar were recorded at Rs218 and Rs220 at 4:45 pm PST.

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