PKR extends gains against dollar, rises 27 paisa as govt closes in on IMF tranche.

The rupee continued to extend gains against the US dollar in interbank trade on Thursday, appreciating by 27 paisa - a development that is being attributed to the government's measures to pave way for the release of loan tranches by the International Monetary Fund (IMF).

According to the Forex Association of Pakistan (FAP), the rupee appreciated Rs1.50 from the previous day's close of Rs205.40 to reach Rs203.90 by 1pm.

The FAP's closing rate of the previous session was higher than the State Bank of Pakistan's rate of Rs205.12.

By the closing time on Thursday, the greenback was being traded at Rs204.85 in the interbank market.

FAP Chairperson Malik Bostan told Dawn.com that the rupee had been showing rapid recovery against the dollar in recent days amid hopes that the IMF would soon release funds of around $2 billion.

A report by Mettis Global - web-based financial data and analytics portal - also linked the rupee's appreciation witnessed today to the government's steps aimed at the release of loan tranches by the IMF.

However, the report added that experts are of the view that this appreciation in the rupee's value was "short-lived due to a prolonged bullish rally of oil prices in the international market".

On Wednesday (yesterday), the National Assembly approved the finance bill for the upcoming fiscal year, with some major changes relating to taxation and levy on petroleum products in line with the government's commitment to the IMF.

Earlier on Tuesday, Pakistan had received the Memorandum of Economic and Fiscal Policies (MEFP) from the IMF for the combined seventh and eighth reviews of its $6 billion loan programme, which has been stalled since April.

The MEFP contains certain prior actions that would be necessary for...