Pakistani rupee crashes against US dollar in interbank
March 20, 2023 11:43 PM
The Pakistani rupee lost its steam against the US dollar and slumped heavily during the interbank trading on Monday, reported 24NewsHD TV channel.
According to the State Bank of Pakistan, the market saw a wilting of Pakistani rupee as the US dollar stormed ahead appreciating by Rs2.32 in the interbank trading and ended the day at Rs284.71.
On Friday, the last trading day of the previous week, Pakistani rupee saw some respite against the US dollar as it went up by 71 paisas in the interbank trading.
According to economic experts, the market shows little confidence in the stability of rupee owing to political instability in the country, depleting forex reserves and delayed disbursement of IMF tranche.
Though the cash-starved country has completed all prior actions demanded by the global lender for reaching the staff-level agreement, but still it is not releasing the $1.2 billion disbursement that will also unlock the assistance from friendly countries.
The IMF has been pushing Pakistan to implement economic reforms and tighten its fiscal policies in exchange for the loan, but this has proved to be a difficult task for the government.
Speculation had been rife that Pakistan may be forced to compromise on its nuclear programme in exchange for financial assistance from the US, Europe, and international lending agencies to shore up its tottering economy.
However, Finance Minister Ishaq Dar dismissed these “speculations” and assured the international community that it would not bow down to any external pressure.
The IMF also trashed speculations that the global lender had attached any conditions to Pakistan’s missile or nuclear programme as part of the ninth review of the IMF-supported $7 billion loan programme.
Ms Esther Perez Luiz, the IMF resident representative, clarified that discussions with the Pakistani authorities have exclusively focused on economic policies to address the country’s economic and balance of payments issues.
Ms Luiz categorically denied these speculations, stating that there was “absolutely no truth” to any such insinuations.
Reporter Ashraf Khan