Rupee losses continued on On Thursday, when the local currency dropped to record short of Rs 240.5 against in dollar in interbank market.
According to the Forex Association of Pakistan (FAP), the rupee shed 4.48, or 1.89 percent, from yesterday’s close. of 236.02 by 12:03.
Therefore, the ruble was trading at 240.5 against U.S. dollar.
Association of Stock Companies of Pakistani Secretary General Zafar Paracha has directly blamed on political situation in the country and the government of action.
“The political situation in the country bad but government and the political parties don’t seem to care. They only concerned with saving them governmenthe complained.
Paracha pointed out rating agencies downgraded Pakistan’s outlook, while a tranche expected to be released by the International Monetary Fund (IMF) has reportedly been delayed.
In addition, there was uncertainty as to whether the Executive Director of the Fund board would demand more actions before the issuance of the tranche.
real reason for rupees decline was that “we are not doing what we should be doing, and we are not taking any practical steps”, he said.
financial the situation worsened due to mismanagement and lack of of attention, currency dealer said.
To stop the free fall of the rupee, government should stimulate exchange companies and overseas Pakistanis, link imports with exports and reduce his expenses, in his opinion.
” public is playing this is role and pay taxes, but those responsible doesn’t seem to do anything.” – Paracha added.
Executive Director of This was stated by Mohammad Sohail from Topline Securities. one of the reasons behind the fall of the rupee was “reduced intervention” of the State Bank of Pakistan (SBP).
In addition government can allow the local currency to weaken in order to reduce imports, he added.
He also referred to the political situation in country for constant pressure on rupees, adding that it can remain before release of tranche of the IMF.
Pressure on rupee disappear soon: Myth
Earlier this week, Finance Minister Miftah Ismail said pressure on the rupee “disappears” in pair of weeks.
AT one-on-one conversation with Mosharraf Zaidi, CEO of consulting firm Tabadlab, Ismail said the influx of dollars to Pakistan will be soon to be higher than churn, resulting in in stable exchange rate.
“No one is happy with operations, but sometimes it is necessary,” he said, defending his policy of reduction in imports reduce in dollar churn is a measure that can slow down down economic growth as well as reduce collection of taxes at the stage of import.
He repeatedly insisted that fears of sovereign default were exaggerated, and that politicians knew “all the balls that (they) in in air i.e. expected inflow of foreign currency in in next quarter or so.
“Here’s what I’m trying to do: moderate our purchases (imports) and not slow down down our export. I’m going to do it within two or three months. (With each passing) week I have more pen on foreign currency,” he said.
Since inception of in new government in Islamabad in Start of in second a week of April, dollar appreciated over 28 pieces or 51 rupees.
Between April 7 (when then-prime minister Imran Khan was expelled from power) and on July 22, the rupee lost 21.3% of its value. against United States dollar both due to yawning trade shortages and growing political instability and uncertainty.
The rupee rose to 204.56 rupees. in in first a week of July after touching 211.93 on 22nd of June. Then it continued to lose its value. against in dollar but registered a slight increase when the country reached an agreement at the staff level with IMF on July 15.
He kept falling in each session since then.
The rupiah lost 8.25% last week. of its meaning against United States dollar within a week: it closed to an all-time low of 228.36 for dollar on July 22 from 210.95 people dollar on July 15.
In opening session this week, the rupee fell further to Rs 229.88.
Importers can’t agree on dollars for imports, while the State Bank of Pakistan still fails to improve its foreign exchange reserves below double-number.