Pakistani currency has strengthened slightly by Rs1.49 to a one-month high of Rs162 against the US dollar in the interbank market during intraday trading.
As the international oil price crashed to zero, the rupee recovered against the dollar.
Alpha Beta Core CEO Khurram Schahzad, “The recovery of rupee against the dollar was due to the scheduled “more inflows (of the dollars) and lower outflows.”
Due to the drop in the international oil price, Pakistan can save billions of dollars as Islamabad depends on imported oil to meet domestic requirements.
Schahzad said that the International Monetary Fund (IMF) has formally approved a new assistance package of $1.38 billion for Pakistan. The aim is to help Pakistan and support it in its fight against the coronavirus pandemic.
Also, the World Bank and the Asian Development Bank (ADB) are considering extending similar loans to $1.8 billion in total.
Pakistan’s debt repayment worth around $12 billion for one year was deferred by the G20 group of countries. Paris club is also considering rescheduling the debt repayment.
The rupee has recovered by almost Rs5 since it hit an all-time low over Rs167 in recent days. The drop occurred due to huge outflows of dollars by foreign investors from Pakistan.