Pakistan’s rupee rises from record low as IMF set to start talks

Islamabad: Pakistan’s rupee advanced from a record low as the International Monetary Fund team is set to start negotiations over the resumption of its $6.5 billion bailout.

The rupee advanced 1.7 per cent to 265 per dollar on Tuesday, after sliding to an unprecedented 270 on Monday, according to the foreign”-exchange desk at Arif Habib Ltd.

Optimism the nation may be at the brink of securing funds from the IMF is growing after Prime Minister Shehbaz Sharif took bold steps, including loosening its grip on the currency and raising fuel prices. A team from the Washington-based multilateral lender arrived Monday for a review after months of delay in the next loan tranche.

Pakistan is spiraling deeper into crisis amid a shortage of dollars and accelerating inflation, increasing the urgency for IMF financing. The rupee slid this month after money exchange companies abolished the limit on the dollar-rupee rate in the open market to curb the black market, where the greenback was being sold at about 10 per cent above advertised rates.