The International Monetary Fund has advised Pakistan to adjust its currency value against the US Dollar in line with the Real Effective Exchange Rate, a step that could lead to further depreciation of the Pakistani rupee.
During ongoing consultations with Pakistani authorities, the IMF suggested that the exchange rate should better reflect underlying economic fundamentals. Officials familiar with the discussions said such an adjustment could move the rupee into a range of Rs. 290 to Rs. 300 per dollar, compared with its current level of around Rs. 280.
The recommendation comes as Pakistan prepares its upcoming federal budget while continuing negotiations with the IMF over broader economic reforms.
A weaker currency could improve export competitiveness by making Pakistani goods cheaper in international markets. However, it may also increase inflationary pressure because imports such as fuel, machinery, and industrial raw materials would become more expensive.
Pakistan has been working with the IMF to stabilize its economy through fiscal consolidation and structural reforms. These measures include strengthening revenue collection, maintaining exchange rate flexibility, and improving overall macroeconomic stability.
