The rupee has depreciated to an all-time low against the US dollar. The State Bank of Pakistan has let the rupee to fall by Rs0.49 and it has now reached Rs140.78 to the US dollar in the inter-bank market.
It is expected that ahead of an agreement with the International Monetary Fund (IMF) for a long-term loan programme, the rupee has been depreciated.
According to the State Bank of Pakistan, in the past three weeks the rupee has overall dropped by 1.6 percent or Rs 2.25.
Pakistan has been asked by the IMF to end the control of State over the rupee and allow the currency to move freely and find its place against the US dollar.
World Bank has also supported the notion of allowing rupee to freely move from the state control in order to boost the exports and economy of the country.
Renowned businessman Arif Habib said, “It seems that Pakistan has agreed with the IMF condition of leaving the rupee free.”
Adding, “Approaching the IMF for financial assistance is a good decision of the government. However, it should have thoroughly negotiated and entered into the loan programme on its own conditions instead of taking dictation.”
According to a leading banker, the rupee depreciation is due to the rising oil prices in the global markets.
He said, “The situation has mounted pressure on the rupee and has forced the authorities to agree to further depreciation. This coincides with the IMF condition of allowing the rupee to move on its own fundamentals.”
Finance Minister Asad Umar said earlier, “There is a possibility that Pakistan and the IMF may sign a deal at the end of IMF’s staff-level mission, which will arrive in the third week of April.”