KARACHI: The US dollar continued to lose ground against the Pakistani rupee Wednesday despite deadly floods causing huge economic losses to the country.
The rupee closed at 218.75 per dollar after gaining 1.37 during the interbank market, down from yesterday’s close of 220.12, according to the State Bank of Pakistan’s (SBP) data.
Early estimates put the damage from the floods at more than $10 billion, government officials have said, adding that the world had an obligation to help the South Asian country cope with the effects of man-made climate change.
The major reason for the rupee’s uptrend was due to the approval from the International Monetary Fund’s (IMF) Executive Board to release the much-needed $1.17 billion tranche.
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With the revival of the IMF programme, Pakistan is expected to receive funds from multilateral and bilateral organisations, apart from friendly countries.
Economist and former adviser to the federal ministry of finance Dr Khaqan Hassan Najeeb said that the IMF programme resumption would certainly help build Pakistan’s depleting foreign exchange reserves, but the flood devastation has increased the country’s foreign financing needs.
