Pakistani rupee devalues close to much anticipated Rs200

The latest depreciation comes in the midst of the start of talks between the government and the International Monetary Fund (IMF) for the revival of the Multi-Miliar Dollar Loan program that is jammed.

The domestic currency has maintained a decline in consecutive working days in a row because cumulatively lost 7.5 % or RS13.92.

The importer has maintained a panic dollar purchase with the assumption, the IMF may not continue the loan program after the government remains reluctant to meet its prerequisite requirements.

Finance Minister Miftah Ismail said on Sunday that they would try to convince the IMF to soften their condition.

The IMF has asked the government to attract subsidies on petroleum and electricity products.

Experts believe that the country really needs an IMF program to be continued to avoid an increase in default risk in international payments including import payments and foreign debt payments.

The country’s foreign exchange reserves have thinned to a critical level of $ 10.3 billion which covers only six weeks of imports compared to the closing of the usual three -month imports.

Importers make a panic purchase of the US dollar on limited supply, because exporters delay the receipt of payments from foreign buyers who anticipate Rupees can touch the RS200 level immediately.

Taking a signal, apparently from the sharp increase in the risk of Pakistan’s default in the global bond market, foreign investors have returned to sales counters in the domestic market, because they attract $ 12 million (Rs2.34 billion) by dismantling Pakistani Investment Bonds (PIBS) previously today today .

Meanwhile, the Federal government is also reported to have imposed a full ban on imports of unnecessary and luxurious goods to deal with the economic misery of the country that is troubling on Wednesday, reporting Express News.

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