KARACHI: In anticipation of the executive board meeting of the International Monetary Fund (IMF) on August 29 in Washington, the Pakistani rupee’s value versus the US dollar continued to decline on Thursday.The local currency, which had closed yesterday at 218.38 in the interbank market, was trading at 219 as of 11 a.m., down 0.62 paisas against the dollar.
According to economic experts, the rupee would remain under pressure until the IMF board approves the payment of Pakistan’s $1.17 billion tranche.Acting Governor of the State Bank of Pakistan, Murtaza Syed, stated in an interview that Pakistan is likely to get a loan tranche of $1.17 billion from the IMF within six days after the Executive Board’s approval.
Once Pakistan receives the IMF loan, analysts believe the government would get more funding from multilateral and bilateral organisations, helping to replenish its dwindling foreign exchange reserves.Once Pakistan receives the IMF loan, analysts believe the government would get more funding from multilateral and bilateral organisations, helping to replenish its dwindling foreign exchange reserves.
In addition to the pressure from the IMF, the government lifted the months-long ban on the import of luxury items, and the rupee has been under pressure as a result of the export growth rate not keeping up with expectations
Additionally, the need that travellers from Pakistan declare 5,000 dirhams at the airport upon arrival in the UAE has driven up the open market price of the US dollar.The rupee is declining, according to economist and former federal ministry of finance adviser Dr. Khaqan Hassan Najeeb.
