KARACHI:
The Pakistani rupee fell below Rs 209. against United States dollar for in first time in inter-bank market in early hours on Friday.
dollar was available in record low level of Rs 209.19 against US dollar, currency dealer reported at 10:16.
It closed at Rs 207.67. on Thursday.
In aggregate, the rupee fell by 33% (or 51 rupees). in in past one-year to date compared to Rs 157.54 on June 30, 2021, according to the Central bank data.
Read Pakistan is looking for the US help revive the deal with the IMF
latest drop in the currency is locked in after the country’s foreign exchange reserves fell to a 34-month low of $9 billion, hitting a deteriorating balance sheet hard. of international payment crisis.
Pakistan turned to the US help revive the International Monetary Fund (IMF) loan program, which has remained at an impasse for in past one-year.
“Inter-bank market not yet sure the IMF will revive its lending program ($6 billion) for Pakistan,” said Syed Atif Zafar, CEO of a financial research firm, Uraan, during a conversation with Express Tribune.
Uncertainty of the IMF program has kept the foreign exchange bank and stock markets nervous. “There is no clear- cut script and direction in markets, he added.
rebirth of IMF program needed to manage balance sheet of international payment crisis.
Read more Tough IMF conditions
“It’s still 50:50 whether the IMF program will be revived or not. The situation will only get worse. clear by the end of June,” he said.
It is pertinent to note that government It has already took the number of measures on directive of Fund. eliminate subsidies entirely on petroleum products for in global lender to resume its program.
Recent measures taken government show that he is working hard to revive the IMF program and unlock other bilateral and multilateral sources of foreign funding as soon as possible.
However, there are still a couple of measures to be taken government revive the stalled lending program, including start of Collection of oil development collection (PDL) and general sales tax (GST) on petroleum products, upward adjustment in rates of income tax for hired people and increase in gas, as well as the tariff for electricity.
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