Rupee appreciates

The rupee ended slightly higher against the dollar in the interbank market on Monday, dealers said. The rupee closed at 141.28 against the greenback, compared with the previous closing of 141.31. In the open market, the local currency posted gains. It traded at 141.50 against the dollar, compared with Friday’s level of 142.

The staff-level IMF mission is holding talks with Pakistan to finalise the Extended Fund Facility. The IMF mission is in Islamabad since last week to conclude the deal for a three-year financial support package, amounting to around $6.5 billion.

The government and the Fund shared views on growth target and policy adjustments to maintain the growth momentum. The planning Commission also briefed the IMF mission on planning process and the China-Pakistan Economic Corridor.

Adviser to Prime Minister on Finance Dr Hafeez Shaikh said that meetings with the IMF were moving on right direction. But the sources said that both the sides had divergent views on macroeconomic framework projections and exchange rate and interest rate policies.

Shaikh said the agreement with the IMF will have positive implications for the economy. It will improve foreign investor confidence in the country’s economy. He also said that the government is committed to a policy of fiscal discipline.