• The exchange rate witnessed a gain of 18 paisas against the dollar to reach Rs217.79.
• Currency experts said that the market remained on an upward trend.
• The Asian Development Bank (ADB) announced it would provide aid of around $2.5 billion for relief operations.

KARACHI: The Pakistani rupee continued its winning streak against the dollar owing to improved investors’ sentiments along with expected inflows from multilateral institutions, dealers said.

The exchange rate witnessed a gain of 18 paisas against the dollar to reach Rs217.79 from the previous day’s closing of Rs217.97 in the interbank foreign exchange market.

Currency experts said that the market remained on an upward trend following Finance Minister Ishaq Dar’s statements on stabilizing the value of the local unit and that Pakistan will not seek debt restructuring from Paris Club creditor nations.

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 country is also expected to receive around $1 billion from the United Nations (UN) and $1 billion from the World Bank during a period between October and December.

The international oil prices slid more than 2 percent on Tuesday, extending losses of nearly 2 percent in the previous session, as recession fears and a flare-up in Covid-19 cases in China raised concern over global demand.
Brent crude fell $2.30, or 2.4 percent, to $93.89/barrel, while the West Texas Intermediate crude dropped $2.12, or 2.3 percent, to $89.01/barrel.

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 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 Rs12.94 or 6.31 percent from Rs204.85 to the dollar on June 30, 2022 to the current level of Rs217.79.

At the open market, the buying and selling of the dollar was recorded at Rs216.5 and Rs218.5 at 4:45pm PST.

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