Pakistani rupee sinks to record low against dollar
Rupee likely to remain under pressure because of IMF repayments – File photo
KARACHI:The Pakistani rupee on Monday sank to an all-time low against the US dollar over Forex reserve fears as the country repayed $146 million to the International Monetary Fund.
The rupee fell to 100.1 to the greenback in trading in Karachi, down from 99.30 on the open market Friday, and has now lost 39 per cent of its value against the US currency since March 2008.
“We have traded the dollar at 100.1 rupees, although there is a slight difference on the open market,” said currency dealer Mohammad Arshad.
The official inter-bank rate for the dollar is 98 rupees, but Mohammad Sohail, who heads brokerage firm Topline Securities, confirmed it had crossed 100 on the open market.
Pakistan had a $10.7 billion IMF loan until September, but had drawn only about a third of it. The government has indicated it would not seek a new loan.
Pakistan repaid $145.79 million to the IMF on Monday and is scheduled to repay another $375 million on February 26, according to Syed Wasimuddin, spokesman for the country’s central State Bank.
So far Pakistan has repaid $2.57 billion, $1.5 million this fiscal year, ending June 30, according to the central bank.
“The rupee is likely to remain under pressure because of IMF repayments,” said Sohail.
“The foreign exchange reserves have declined to $8.7 billion as of January 31 from $10.8 billion at end-June 2012,” said the central bank last week.
The IMF last November urged Pakistan to reduce its large budget deficit to bolster the struggling economy’s resiliency, noting that foreign exchange reserves under $10 billion were below adequate levels.
Karachi stock exchange is doing very good.Its time to make money through forex and stocks.
Rupee falling, stock index rises, national reserves falling…….whats going on?
elections. just about
Pakistan Govt.has not taken enough steps to reduce/eliminate corruption.(mildly putting it.).Do our politicians even read all these comments on your(dawn) pages, leave alone taking corrective action..Or all of us are just blowing hot air and wasting time, being just satisfied that our comments have been reproduced in the newspapers/net.
concerned.
Waiting to see Rs.1000 per Dollar.
Urgent need to reduce defense budget and also increase tax base………………too few people under tax umbrella . Mainly the ordinary salaried class from whom the tax is deducted at source at the time of salary payments must be bearing the burden.
It is a vicious cycle as a large amount of political support and funds may be coming from people/organisations/corporations who do not DESIRE to pay taxes. They would rather seek political patronage and mileage by direct contributions to parties.
No or minimum revenue means no funds for development projects, loan repayments and especially for education sector. An illiterate society is a bomb waiting to explode !!
Come out of it before it consumes the country. But which party will Bell the cat ! or is it that a revolution is needed !.
I’m waiting for the day when all our so called leaders pack up and leave the country saying “there’s nothing left here anymore”, we are moving to London where all our money is.
Excellent reply. That is the way to hit them…directly on the face. Salams
And they live there on welfare in a small cube like apartment.
That’s a sad state…both India and Pakistan should focus entirely on building their economies, that’s where real strength lies.
Until common people of these nation wake up and shake their faith, these leaders and monitory institutes will take advantage of them.
sir, i feel there is great scope to increase forex reserves.if true followers of islam pay taxes sincerely, fiscal deficit will come down. feudal lords should be taxed heavily. there is an urgent need for land reforms. military officers and civilian officers, mnas and membersof provisional assembly should be brought under tax orbit.. but who will bell the cat?
You should do it.
True followers of Islam do pay their fair share. The problem is where that share goes. The trust on these so called leaders is fainted and your can not develop any nation on individual level.
Why bring Islam everywhere?