The rupee saw a significant increase in value against the US dollar on Wednesday, rising 1.08 percent in the interbank market. According to the State Bank of Pakistan (SBP), the local currency increased by Rs2.95 to settle at 273.33 against the US dollar.
Despite this rise, the value of the rupee has decreased by 24.74 percent against the US dollar during the current fiscal year. Despite this decrease, the market remains optimistic about the start of the International Monetary Fund (IMF) program and talks between the government and IMF about funding are underway.
However, with the current fuel consumption, exchange rate, and global oil prices, the government may need to re-legislate and raise the petroleum levy from Rs50 to Rs70 per liter to generate the needed Rs855 billion in the remaining months of the current fiscal year.
It is important to note that the government’s decision to raise the petroleum levy will have an impact on the local market, including consumer prices and the overall economy. Nevertheless, the market remains hopeful that the IMF program will begin shortly and provide the necessary support to the country’s economy.
