The Pakistani rupee (PKR) fell further on Wednesday, reaching a new low of 237 against the US dollar in the interbank market, compared to the previous closing of Rs232.93, according to Mettis Global News.
It is worth noting that Pakistan has spent more than $3.5 billion on petroleum product imports in August and September, with payment due in less than five weeks. The impact of this deadline is already producing a scarcity of the dollar in the markets and putting more pressure on institutions who are already short on US cash.
Dollar at Rs 236.
Inflation Bomb Like Never Before.
Shahbaz Shareef LAANAT Qabool Karain.
— Mir Mohammad Alikhan (@MirMAKOfficial) July 27, 2022
The rupee lost 21.3 percent of its value against the US dollar between April 7 and July 22, owing to the country’s enormous trade imbalance as well as rising political unrest and uncertainty.
Why is the mainstream media not considering massive devaluation as the primary issue!
In 2 months, the average income of Pakistanis dropped by 20% in dollar terms & no one is here to discuss.
$ at 237Rs+ now
We don't even have a governor of the State Bank. No clear policy…
— Economy of Pakistan (@Pakistanomy) July 27, 2022
In the first week of July, the rupee rose to Rs204.56 from Rs211.93 on June 22. However, it continued to lose value against the dollar, but it enjoyed a minor uptick on July 15 when Pakistan inked a staff-level agreement with the International Monetary Fund (IMF). It has continued to fall in each session after then.
Inflow of foreign currency is expected in the next quarter: Miftah
During a discussion with the CEO of advisory services firm Tabadlab, Mosharraf Zaidi, Miftah Ismail stated that he, the governor of State Bank and Prime Minister Shehbaz Sharif were all certain that Pakistan will not default because “all the balls that [they] have in the air” are expected to land in place and an increase in the inflow of foreign currency is expected in the next quarter.
He stressed on the need to send a “positive signal” to markets.
He also quoted JP Morgan’s special research report on Pakistan, wherein the investment banking company has stated that “Pakistan will not default in its payments.”
Pakistan Will Not Default On Its Payments Says JP Morgan.
With austerity and reform measures taken in the budget and since the budget, the IMF agreement and progress with other multilateral institutions, our bonds are a safe and smart investment. https://t.co/cJeq124cGL
— Miftah Ismail (@MiftahIsmail) July 27, 2022