Pakistani Rupee has dropped to Rs 128 against the dollar in the open market. The rupee has weakened by 1.34% despite the fact that there are talks going on in between the PTI government and International Monetary Fund (IMF). The aim of these discussions is to find a mid-ground for external funding and to bridge the gap between the present account and the fiscal deficits.
On Friday the rupee closed at 126.30 while being stable at 125.50/60 on Thursday. But since Friday the value of rupee has dropped as there have been reports that the IMF team and the Pakistan government have agreed to devalue the rupee to 130/135.
According to a few dealers, the rupee trading against the dollar was as low as Rs 128.50.
Zafar Paracha, the general secretary at Exchange Companies Association of Pakistan said, “There was a clear sign of heavy dollar buying. That created a shortage of dollars in the kerb market. The uncertainty about the IMF bailout and the future direction of the exchange rate encouraged investors to rush to purchase the greenback.”
Malik Bostan, president, Forex Association of Pakistan, said that there had been an urgent meeting between the money changers and Arshad Bhatti, director, foreign exchange department at the central bank to discuss the devaluation of rupee and the growing pressure on the economy.
Bostan said, “We have recommended a set of steps with the SBP’s official aimed at stemming a sharp decline in the rupee in the open market. We hope the rupee will stabilize if some of the measures as discussed with the SBP’s official get implemented by the government and the central bank.”