Karachi October 21 2022: Pakistan Rupee gains after falling for the seven consecutive days against dollar in interbank as ADB approved $1.5 billion dollar for Pakistan today while central bank reserves remained unchanged.
The Asian Development Bank (ADB) has approved $1.5 billion in financing to help the Government of Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.
The loan, provided under ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE) Program, will help fund the government’s $2.3 billion countercyclical development expenditure program designed to cushion the impacts of external shocks, including the Russian invasion of Ukraine.
“Agreement signing and release of funds in the week beginning Monday 24th Oct 2022” says Pakistan Finance Minister Ishaq Dar.
Pakistan central bank reserves firm up for the first time since the release of IMF tranche, stand at the level of USD 7,597 million as of 14th October 2022, compared to USD 7,596 million at the end of the week ending 7th October 2022.
Pakistan Rupee appreciate 11 paisa or 0.05 percent in interbank to close trading at 220.84 against yesterday closing of 220.95.
Moreover, In Open Market Rupee is trading at 224.9 against dollar at PST 18:30 against yesterday closing of 225.45, according to Forex Association of Pakistan.
The U.S. dollar index, which tracks the currency against a basket of six major peers including the yen, British pound and euro, added 0.17% to 113.07.
Pakistan will ask international lenders for billions of dollars in loans after devastating floods exacerbated the South Asian nation’s economic crisis, the Financial Times reported on Wednesday.
“We are not asking for any kind of measure [such as] a rescheduling or a moratorium,” the country’s Prime Minister Shehbaz Sharif told the Financial Times. “We are asking for additional funds.”
In September, the current account deficit (CAD) declined for the 3rd month in a row. It fell to $0.3bn, less than half the level in August. In Q1FY23, the CAD has fallen to $2.2bn from $3.5bn in Q1FY22, mainly reflecting a decline in imports, according to data released by State Bank of Pakistan.
Pakistan’s new finance minister, Ishaq Dar, told Reuters on Friday that he will seek rescheduling of some $27 billion worth of non-Paris Club debt largely owed to China, but will not pursue haircuts as part of any restructuring. The veteran finance minister said multilateral development banks and international donors have been “quite flexible” with ways to meet Pakistan’s external financing needs estimated at about $32 billion after devastating floods.
