KARACHI:The Pakistani rupee (PKR) on Thursday gained Rs0.42 against the US dollar in the interbank market. According to the State Bank of Pakistan, the local unit (PKR) recovered Rs042 against USD to close at 283.47. The US dollar closed at Rs283.89 the other day. Currency dealers believe the market increased on a speculative report about a $1 billion commitment by the UAE.

Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments. To unlock the funding, the government has cut back on subsidies, removed an artificial cap on the exchange rate, added taxes and raised fuel prices. A Pakistani delegation comprising top officials of the finance ministry and the central bank is currently in Washington to attend the Spring meetings of the IMF.