Rupee Strengthens by 1.4% against the dollar

$150 billion

Pakistani Rupee has gained strength against the US dollar by 1.4%. On Wednesday the Pakistani rupee reached Rs132.03 to the US dollar in the inter-bank market. The reason Pakistani rupee has gained strength is due to the $6-billion assistance package given by Saudi Arabia to Pakistan.

On Tuesday Rupee closed at Rs133.91 to the greenback but on Wednesday it strengthened and reached Rs 132.03.

The financial assistance was given by Saudi Arabia just at the time when Pakistan desperately needed it. Finance Minister Asad Umar also disclosed earlier that Pakistan immediately needs $2 billion to smoothly go through the present tough time. The foreign reserves of Pakistan dropped to a low level of $8.08 billion. Thus the Saudi financial assistance has come just at the right time.

Exchange Companies Association of Pakistan General Secretary Zafar Paracha said, “The rupee’s recovery came following the announcement of a $6-billion aid package for Pakistan by Saudi Arabia.”

Saudi Arabia has agreed to provide Pakistan $3 billion in cash and $3 billion on a credit line for oil supply to Pakistan for three years. After Prime Minister Imran Khan attended the Future Investment Initiative (FII) conference in Riyadh these announcements were made by Saudi Arabia. Thus it can be said that Imran Khan’s visit to Riyadh was fruitful.

Read also: Pakistani Rupee remains stable against the dollar

Pakistan Forex Association President Malik Bostan said, “The (Saudi Arabian) package has removed uncertainty on the balance of payments front.”

Adding, “Aid from friendly countries will help Pakistan acquire IMF loan at better terms and avoid stringent conditions. The outlook for Pakistani rupee remains positive.”

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