The International Monetary Fund has asked Pakistan to adjust its currency against the US dollar in line with the Real Effective Exchange Rate, a move that could lead to further depreciation of the rupee.
During ongoing consultations with Pakistani authorities, the IMF suggested aligning the exchange rate with REER indicators to reflect underlying economic fundamentals.
Officials said such an adjustment could push the Pakistani rupee to a range of Rs. 290 to Rs. 300 per US dollar, compared with the current level of around Rs. 280.
The recommendation comes as Pakistan prepares its upcoming federal budget and continues policy discussions with the IMF on broader economic reforms.
A weaker currency could help improve export competitiveness but may also add pressure on inflation by raising the cost of imported goods, including fuel and raw materials.
Pakistan has been working with the IMF to stabilize its economy through fiscal consolidation and structural reforms, including measures aimed at strengthening revenue collection and maintaining exchange rate flexibility.
