KARACHI:
The Pakistani rupee has depreciated to almost the long-awaited 200 rupees. against United States dollar in inter-bank market. It was about 3:00 pm trading Rs 199.61 down Rs 3.87 in one day.
latest depreciation occurs against the background of the renewal of negotiations between government and the International Monetary Fund (IMF) for revival of stalled multi-billion dollar dollar credit program.
Domestic currency continued to fall on ninth consecutive business day as it lost 7.5% or Rs 13.92 in aggregate.
Importers support panic buying of dollars on speculation that the IMF may not resume its lending program after government still unwilling to fulfill its preconditions.
Finance minister Miftah Ismail said on On Sunday, they will try to persuade the IMF to soften their terms.
The IMF has turned to government withdraw subsidies on petroleum products and electricity.
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Experts believe that the country is in dire need for the IMF program will be resumed before avoid constantly growing risk of Default on international payments, including import payments and foreign debt redemption.
The country’s foreign exchange reserves have been depleted to a critically low level of $10.3 billion that covers just six weeks of imports compared to the usual three-month import coverage.
Importers made panic buying of United States dollar against limited supplies as exporters delayed receiving of payments from foreign buyers waiting for the appreciation of the rupee could reach the level of 200 rupees. soon.
Thinting, apparently, from a sharp rise in Pakistan default risk in global bond markets, foreign investors are back on the selling shelves in domestic market as pulled out $12 million (Rs. 2.34 billion) through the sale of Pakistan Investment Bonds (PIB) earlier today.
Meanwhile, federal government was also imposition is reported complete ban on import of uselessness and luxury items to deal with with alarming economic problems of the country on Wednesday, Express news reported.
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