Rupee plunges record low at Rs141.40 against US dollar in interbank

F.P. Report

KARACHI: Pakistani rupee continues to struggle and it further depreciates by 30 paisa and is being traded at 141.40 against the US dollar in the interbank market, on Wednesday.

According to details, the depreciations of rupee continues on speculations in the market that Pakistan has entered final stage with the International Monetary Fund (IMF) to let the currency depreciate ahead of obtaining a bailout.

Subsequently, Pakistan’s external debts increased by Rs110 billion.

Currency dealers said the greenback has started gaining fast against the rupee since the last visit of International Monetary Fund officials to the country in March. They added that the State Bank of Pakistan has directed the open market to trade dollar within the range of Rs142-142.50.

Economists see this rise due to strict monetary policies of government in order to fulfill the requirements of the IMF and due to a fall in Foreign Direct investment (FDI).

Due to the recent hike in the price of dollar, the masses are expected to take burden of high inflation with increase in the prices of household items, besides the recent increase in petroleum prices.

Since its inception, the Imran Khan led federal government has been trying to seek bilateral support to plug the trade gap and ease pressure from our foreign exchange reserves.

The latest round of rupee depreciation comes after the delay in the IMF bailout package that is still being negotiated.

Finance Minister Asad Umar said negotiations with the International Monetary Fund (IMF) had entered the final stage with settlement of almost all the issues related to the signing of an agreement.

“We are very close to each other and there is no fundamental difference,” the minister said while talking to media-persons after launching the State Bank of Pakistan’s (SBP) Electronic Money Institutions (EMIs) Regulations.

The Minister added that at present the IMF was engaged in summer meetings with the World Bank and soon after the meetings, its mission would visit Pakistan to finalize the bailout package.