KARACHI:
Pakistani rupee on Monday fell 1.30% (or Rs 2.59) to one-week low of Rs 200.51 against United States dollar around 13:45 in inter-bank market on Monday marked another milestone drop for one day.
The rupee closed at Rs 197.92. against U.S. dollar on Friday, according to the central bank.
“It cause of concern,” the head of Taurus Securities. of Mustafa Mustansir said this during a conversation with The Express Tribune.
” drop seen in prices of oil products fluctuate above $120 per barrel in in global markets, since Pakistan is heavily dependent on on imported energy” added.
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analyst said budget uncertainty heightened the pressure on rupees.” The IMF will consider resuming its loan program after it sees whether Pakistan has met its preliminary commitments in in budget” Mustansir said.
government expected to do financial adjustments worth 2 trillion rupees in forthcoming budget through cutting spending and increasing tax revenues, he added.
Experts announced the resumption of The IMF program is needed to stabilize foreign exchange reserves and avoid deteriorating balance of payment crisis.
Stocks depleted for over $7 billion in in past six- a month to a critically low level of just six weeks of import coverage at $9.72 billion.
Earlier, the IMF said that “Pakistan needs to take a wide-ranging steps restore macroeconomic stability”, indicating that the recovery of the program will not be a cakewalk, despite governments decision raise fuel prices by 25%.
” set of policies and reforms to restore macroeconomic stability are broad,” said Esther Pervez, Permanent Representative of The IMF, in response to a question posted by The Express Tribune last a week.
She singled out out conclusion of fuel and energy subsidies and fiscal year 2022-23 budget as areas that need be addressed for “repairing damaged economy and achieving the objectives of the Expanded Funding (EFF) program.
Pakistan informed the IMF that any budget made on assumption of achievement of the main budget balance would be unrealistic and result in launch new fiscal year on a wrong props, the sources say.
Under the IMF 2019 Extended Financing Facility key goal is the main budget the goal that in present circumstances can only be achieved by combining of development reducing costs and increasing revenue collection.
Another goal of the program is to continue the implementation of market exchange based rate. rupee now trading on his one of lowest value of Rs 198.5 per dollar.
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