- US dollar closes at 200. in interbank market.
- Rupee Cumulatively Loses Nearly 8% in in last ten sessions.
- The IMF program has become a necessity for Pakistan, Hafiz Pasha says.
KARACHI: With uncertainty over revival of loan program of the International Monetary Fund (IMF) amid increasing political pressure on in government announce snap polls, Pakistani rupee fell to new historical low in interbank market.
with fresh decline of Rs 1.61, or 0.81%, the local currency closed at Rs 200. against U.S. dollar on Thursday, State Bank of This was announced by Pakistan (SBP).
the rupiah closed yesterday at 198.39 rupees.; However, in line with according to analysts’ forecasts, the currency surpassed the astounding milestone of 200 within first Little hours of trading today.
On the first day of negotiation with IMF mission, Pakistan has indicated that it is ready to take “strong measures”. such as magnification in POL products and electricity prices, but only in stages, in to restart a stalled $6 billion funding program.
The domestic currency kept the trend of set and break records for eighth working day in a row as it lost 7.7% or Rs 14.31 in aggregate. in in last ten sessions.
Currency hit a record short of Rs 188.66 on May 10. It later dropped to Rs 190.02 on May 11 fell over 191 rupees on 12 May, reached Rs 192.52 on May 13 sank below 194 rupees on 16th of May, down up to Rs 195.74 on May 17 and yesterday (May 18) closed at Rs 198.39.
This worth noting that the country follows the market exchange based on rate where is the currency moves determined market strength of demand and delivery.
At first of this fiscal year (July 1, 2021) the rupee has collectively fallen by 26.95% (or Rs 42.46) to date compared to the previous financial period. year closed at Rs 157.54.
The ruble kept its downward trend for in last 13 months. To date, it has lost 31.34% (or Rs 47.73) compared to the previous year. record high of Rs 152.27 recorded in may 2021.
The US currency remained above the important milestone outperformed a day earlier to close at Rs 201.5. in Open market today.
Hafiz Pasha is full of hope of “flexibility” from the IMF
rebirth of the IMF program has become a necessity for Pakistan in command to curb dollar flight, former finance minister Dr. Hafiz Pasha said Geo.tv.
“AT next a few days, rupee-dollar parity depends on how negotiation with Fund mission turn around,” he said, repeating that if the Pakistani delegation successfully convinces the IMF to revive the stalled multi-billion dollar program, the local currency will stabilize.
Taking into account the government’s reluctance on take it hard decisions to comply with the conditions of the IMF, former finance minister said that despite the delay, international body we will show “flexibility” after the US statement regarding economy.
Read more: government take it all possible measures to stabilize the rupee, Miftah Ismail says
“This time, the IMF attitude towards the Pakistani delegation will be different, because of United States. Pakistan now needs to focus on convince them [IMF mission] that the country will increase revenue even if they decide against elimination of subsidies on petroleum products,” he said.
A day earlier A. US State Department Spokesperson Promises Strong US to Pakistan support for their recovery efforts economy shortly after the arrival of Foreign Minister Bilawal Bhutto-Zardari in New York for a series of meetings, including bilateral one with US secretary of Anthony Blinken’s fortune.
Pasha, however, emphasized that if Pakistan moves in relation to new surveys, this will “negatively” affect the local currency. “Call for new elections will create uncertainty in short run”, he said, adding that Pakistan also should stop the IMF program because the caretaker government does not have sufficient authority to in discussion with Fund.
“It is important for in new government submit proper federal budget for fiscal year 2022-23 which is second an important factor that play role in stabilization of the rupeedollar parity,” he concluded.
Prime Minister Shehbaz draws attention of dollar flight
Meanwhile, Prime Minister Shehbaz Sharif took notice. of continuous depreciation of rupee against United States dollar. The prime minister will call an important meeting today on economic situation to discuss issues related to the prevention of currency devaluation.
At the meeting, which will be attended by representatives of the Ministry of Finance, Federal Council of Revenue and Ministry of trade, the premier will be informed of import and export situation of the country.
Read more: Elections before economic stabilization will be a disaster, says Kaiser of Bengal
According to the directives of Prime Minister Shehbaz, the relevant authorities will submit a report on the implementation on in decision regarding the ban on import of minor items.
the day before, prime minister banned on import of luxury and uselessness items including cosmetics and vehicles.
Moreover, the sources posted in Federal Council of Revenue (FBR) showed that the summary was received to increase regulatory duty on some of in items including cars, mobile telephones, ceramics, steel products, etc.