KARACHI: The Pakistani rupee on Thursday registered a marginal gain against the US dollar, appreciating 0.03% during the opening hours of trading in the inter-bank market.
As of 10:30 am, the rupee was trading at 279.25 rupees against the dollar, up 0.07 rupees, in the interbank market.
The rupee was almost stable at Rs 279.32 against the US dollar on Wednesday, according to SBP.
Meanwhile, Moody’s Investors Services (Moody’s) flags ongoing political uncertainty in Pakistan following inconclusive election outcomes, labeling it as a credit negative. In its recent report on Pakistan, the rating agency highlighted the persistent ambiguity surrounding Pakistan’s ability to swiftly negotiate a new International Monetary Fund (IMF) program, especially after the expiration of the current one in April 2024, posing significant risks.
The report underscores that Pakistan’s governmental liquidity and external vulnerability risks will persistently loom until there’s clarity on a credible longer-term financing strategy. The general election held on 8 February resulted in a hung parliament, with the vote count concluding on 11 February. None of the parties managed to secure the necessary majority of at least 134 out of the 266 contested seats to form a government.
While negotiations among parties to form a coalition government are underway, prolonged delays in the process could exacerbate political and policy uncertainties, coinciding with Pakistan’s confronting substantial macroeconomic challenges, particularly its frail external and liquidity positions.
