Just a day after Prime Minister Imran Khan’s successful Saudi Arabia visit, the positive outcome has begun to bear fruits.
The first good news came from the inter-bank market where rupee started to regain its worth against the US dollar. The rupee recovered by Rs 1.92 against the dollar to trade at Rs. 132 on Wednesday morning.
Whereas the rupee was trading at Rs. 134 against the Greenback in the kerb market.
As per experts, the recovery of the currency will reduce Pakistan’s debt burden by Rs. 180 billion.
Pakistan Stock Exchange (PSX) brought the second good news of the day where the stock market saw 1461 points surge in the first hour of trading.
The Saudi Package
This has been possible after Saudi Arabia agreed for a $6 billion support package for Pakistan.
Experts say that the Saudi bailout package may not alternate the IMF bailout and Pakistan may still go to the monetary fund for a hefty loan, but it will aid us to avert the current balance of payment crisis which will ultimately boost foreign exchange reserves. Pakistan’s foreign exchange reserves are currently as low as $8b, less than the country’s 45 days import requirements.
The Kingdom has also agreed to provide oil on one-year deferred payments worth up to $3 billion. This will help Pakistan control the current account deficit.