Advertising

PKR vs. USD: the former snapped its 15-session losing track

According to the expert at KASB Securities, one of the causes for the rupee's constant slide is debt servicing, since gross financing needs for the year are projected at $32 billion.

Print Friendly, PDF & Email

The Pakistani rupee snapped its 15-session losing track against the US dollar on Friday, after depreciating continuously as the economy suffers due to massive flooding.

At the closing of the interbank market’s trade, the rupee gained Rs0.06 to reach 239.65, according to the State Bank of Pakistan (SBP), up in value from the previous session’s close of 239.71 — just 0.23 short of an all-time low.

Arif Habib Limited’s Head of Research Tahir Abbas attributed the rupee’s rise to a correction caused by the expected inflow of funds from multilateral money lenders. He added that the market reacted to news that the World Bank (WB) plans to provide $1.7 billion in flood aid to Pakistan.

Read more: SBP official explains “Why is the Rupee always depreciating?”

Moreover, the news shared by the finance minister Miftah Ismail that the government is in discussions with the International Monetary Fund (IMF) to broaden the present programme was also a favorable sign for the market.

According to the expert at KASB Securities, one of the causes for the rupee’s constant slide is debt servicing, since gross financing needs for the year are projected at $32 billion.

Floods have affected 33 million Pakistanis, caused billions of dollars in damage, and killed over 1,500 people, raising fears that Pakistan may fail to meet its debt obligations. Pakistan had previously projected $30 billion in damage, while both the government and UN Secretary-General Antonio Guterres blamed the flooding on climate change.

The Financial Times reported on Friday, citing a UN policy memo that as the recent floods exacerbated the country’s financial crisis, Pakistan should delay international debt obligations and restructure loans with creditors.

The newspaper also reported that according to the memorandum, which the UN Development Programme will discuss with Pakistan’s government this week, the country’s creditors should consider debt relief so that policymakers can prioritize disaster response funding over loan repayment.

Continue reading

Steps taken to secure PMO after audio leaks: Law Minister

Law Minister Azam Tarar addressed press conference in on Thursday saying that steps are being taken to secure PMO after audio leaks.

HBL to counter head on allegations of terror financing in US

Earlier today, Bloomberg reported that Habib Bank Limited (HBL), faces secondary liability in a terror funding case in the United...

Pakistan would rather be bridge between China, US: Bilawal

On Thursday, Foreign Minister Bilawal Bhutto Zardari stated that Pakistan wanted to be a "bridge by unifying" the United States and China during a time of geopolitical conflict.