After the ruling PTI government of Pakistan approached the International Monetary Fund (IMF) for a bailout package the rupee has dropped down. Pakistani Rupee has weakened against the UAE dirham and is trading at Rs 36.35.
Pakistani Rupee dropped to an all-time low on Monday morning against the UAE Dirham. Later it did recover slightly but Pakistani rupee has weakened by 21% since 1st January. It has devalued 5 times since December 2017.
It is predicted by the experts that Pakistani currency will further devalue due to the IMF bailout.
Rajiv Raipancholia, CEO Orient Exchange said, “Today, the rupee was trading at 133.10 against the dollar, or 36.23 against the dirham, during early morning hours. It can fall to 135 against the dollar, or 36.75 against the dirham, in the coming days as the IMF feels the rupee is still overvalued and could further depreciate to 145 against the dollar and 39.50 against the dirham.”
Sudhesh Giriyan, COO Xpress Money said, “From an economic point of view, this situation can lead to inflation and a rise in fuel prices in the country. However, Pakistani expats can greatly benefit from better exchange rates. We have seen a surge in remittances each time the currency has devalued as expats get more value on their money transfers.”
It has been reported that Pakistan will seek out an $8 billion IMF bailout but according to the Institute of International Finance (IIF) the loan can reach $15 billion because of $5 billion roll-over debt and $1 billion Sukuk.