UAE: Pakistani rupee gains over 8% against dirham in two weeks

The currency strengthened from 64.5 on September 21 to 60.1 on Thursday

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Waheed Abbas

Published: Thu 6 Oct 2022, 4:34 PM

Last updated: Thu 6 Oct 2022, 5:23 PM

The Pakistani rupee has made a smart recovery against the UAE dirham and the US dollar in just over two weeks in hopes of an increased flow of foreign funds into the South Asian country.

Most of the foreign currency flows into Pakistan are expected in the aftermath of devastating floods, which covered nearly one-third of the country’s land. The floods, the worst in the country’s history, are estimated to cost over $30 billion in damages to the economy.

According to xe.com, the Pakistani rupee has strengthened from 64.5 on September 21 to 60.1 against the UAE dirham on Thursday, gaining by 8.1 per cent.

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The South Asian currency has seen a sharp decline in the past few months after the change in the government in Islamabad due to political instability and a drop in foreign exchange reserves.

On Wednesday, Asian Development Bank announced that it would provide $2.3-2.5 billion in aid to Pakistan to support its relief efforts after the devastating floods.

In September, World Bank also pledged $2 billion in aid for reconstruction and rehabilitation efforts.

Pakistan’s newly-appointed finance minister Ishaq Dar earlier projected that the rupee will strengthen to below 200 against the US dollar (54.5 versus UAE dirham). However, he didn’t cite the factors that will help lift the rupee.

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Waheed Abbas

Published: Thu 6 Oct 2022, 4:34 PM

Last updated: Thu 6 Oct 2022, 5:23 PM

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