Dollar soars to Rs 137 in interbank market

Pakistani rupee strengthens against US dollar

KARACHI: The US dollar soared to Rs. 137 in the interbank market on Tuesday, said forex dealers.
The dollar was up by Rs. 12.75 as the market opened today as it stood at Rs. 124.25 when the market closed on Monday.
The increase in the dollar has led to uncertainty in the market.
According to analysts, the rapid increase in the dollar is owing to the government’s decision to approach the International Monetary Fund (IMF) to deal with the prevalent financial crisis.Earlier on October 08, the government decided to approach the International Monetary Fund (IMF) for a bailout to address the mounting balance of payments crisis faced by Pakistan, announced Finance Minister Asad Umar.
In a video message, the minister revealed that Prime Minister Imran Khan has given the go-ahead to open talks with the Fund for a bailout programme after consulting economic experts and stakeholders.
“The prime minister… after consulting everyone decided today that we should open talks with the IMF,” Umar said.
The finance minister will lead a delegation to hold meetings with the officials of the International Monetary Fund (IMF) and World Bank in Bali this week.
The delegation will attend the meeting taking place on the Indonesian island from October 12 to 14, sources within the Ministry of Finance said.Finance Minister Umar will meet IMF officials on the sidelines of the meeting, where he will discuss the challenges confronting the Pakistani economy and the proposed IMF loan programme, the sources said.
Pakistan has said it might need to return to the IMF to address its mounting balance of payments crisis but would seek funding from friendly countries first.
The premier had on Sunday hinted at approaching the IMF for “bridging loans” during the critical phase the country is passing through, besides exercising options like seeking help from friendly countries to deposit funds in the State Bank to boost reserves.

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