Karachi: The dollar on Tuesday continued to jump against the rupee in the interbank trade, reaching an all-new record level of Rs195.50 paisas because of the political uncertainty, impending IMF programme, and the country’s trade deficit.
This is a further decline in the rupee value after the Pakistani rupee continued its downward spiral on Monday as it closed at 194.18 in the inter-bank market.
Around Rs12.96 has been increased in the dollar value in a month, prompting Prime Minister Shehbaz Sharif to summon a zoom meeting with Finance Minister Miftah Ismail, SBP acting governor Dr Murtaza Syed and the Forex Association officials. The value of the dollar on April 18 was Rs182.54 paisas.
PM Shehbaz has also been concerned over the consistent increase in dollar value against the rupee, according to currency dealers. They have blamed the political uncertainty, delay in the IMF loan, and trade deficit for the prevailing situation in the trade market.
“It the trading bank decreases the dollar value by one rupee in the interbank, and then we will decrease Rs2 in the open market,” Forex Association President Malik Bostan said in a video statement. He also urged the government to put a ban on the import of luxury items.
‘Crossing IMF bridge’
Analyst and economic expert Muzammil Suharwardy stressed the need for crossing the “IMF bridge” in order to steer the country out of the prevailing economic crisis.
Suharwardy, who is also a columnist, had joined Aaj News’ in the morning show ‘Aaj Pakistan with Sidra Iqbal’ on the country’s economic situation segment.
“The IMF agreement was made by Imran Khan and also broken by him. He left an economic landmine for the new government,” he said, “Upon his leaving, he left the whole country in a difficulty.” The economist was of the view that the former premier was aware of the economic impact of such decisions.
The dollar and stock market might be stable if Pakistan and IMF reach a deal after their meeting, which is scheduled to take place on May 18 in Doha, Qatar, he added.
To a query on IMF’s disagreement with the government’s plan for petrol subsidy, Suharwardy said then the government would have to take “difficult decisions”. He blamed PTI chief Imran for lowering petroleum product prices for political benefits.