Karachi (October 24, 2018): The rupee recovered against the US dollar in the interbank and open market on Wednesday.
The rupee hit an intra-day high of Rs132 to the US dollar in the interbank, while on the open market it hit Rs133 after gaining Rs0.90.
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The recovery comes after Saudi Arabia’s announcement of a $6 billion aid Package to Pakistan on Tuesday. Saudi Arabia will provide Pakistan with a deposit of $3 billion for a period of one year as balance of payment support. A one-year deferred payment facility for import oil, us to $3 billion will also be provided. This agreement will be in place for at least three years.
The news of the aid package also had a positive impact on the stock market. At the time this report was filed, the Karachi Stock Exchange had gained 1,454 points during intra-day trading.
Earlier, the Pakistan Stock Exchange also registered gains on Wednesday, as its benchmark KSE-100 index surged by 1,227 points to reach 38942.53 points.
On Tuesday, a statement from Prime Minister Imran Khan’s office said that Saudi Arabia will provide Pakistan with a deposit of $3 billion for a period of one year as “balance of payment support”.
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The development comes as PM Imran visited Riyadh where the prime minister launched a charm offensive targeting potential investors as Pakistan seeks to secure funds amid a yawning balance of payment crisis.
Apart from attending the Future Investment Initiative (FII) conference, the Pakistani premier also met with King Salman bin Abdul Aziz and Saudi Crown Prince Mohammad bin Salman to discuss matters of mutual interest.
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According to the statement, the visit by the Pakistan premier to the kingdom has resulted in significant understandings between the two countries.
Far-reaching decisions on bilateral economic and financial cooperation were also agreed during the meetings with Saudi leadership, the statement said.
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