AGL 5.54 Increased By ▲ 0.04 (0.73%)
ANL 8.81 Increased By ▲ 0.12 (1.38%)
AVN 76.00 Increased By ▲ 0.16 (0.21%)
BOP 5.17 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.56 Increased By ▲ 0.05 (1.11%)
EFERT 81.45 Increased By ▲ 0.36 (0.44%)
EPCL 50.07 Increased By ▲ 0.07 (0.14%)
FCCL 12.50 Decreased By ▼ -0.03 (-0.24%)
FFL 5.61 Increased By ▲ 0.09 (1.63%)
FLYNG 6.89 Decreased By ▼ -0.06 (-0.86%)
FNEL 4.65 No Change ▼ 0.00 (0%)
GGGL 8.71 Increased By ▲ 0.13 (1.52%)
GGL 14.22 Decreased By ▼ -0.03 (-0.21%)
HUMNL 5.58 Decreased By ▼ -0.01 (-0.18%)
KEL 2.58 Increased By ▲ 0.04 (1.57%)
LOTCHEM 27.92 Decreased By ▼ -0.06 (-0.21%)
MLCF 23.67 Decreased By ▼ -0.03 (-0.13%)
OGDC 72.00 Increased By ▲ 0.36 (0.5%)
PAEL 15.09 No Change ▼ 0.00 (0%)
PIBTL 4.90 Increased By ▲ 0.01 (0.2%)
PRL 15.84 Increased By ▲ 0.03 (0.19%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
TELE 9.00 Increased By ▲ 0.06 (0.67%)
TPL 7.17 Increased By ▲ 0.14 (1.99%)
TPLP 18.43 Increased By ▲ 0.12 (0.66%)
TREET 20.99 Decreased By ▼ -0.04 (-0.19%)
TRG 135.20 Increased By ▲ 0.65 (0.48%)
UNITY 16.65 Increased By ▲ 0.02 (0.12%)
WAVES 9.43 Increased By ▲ 0.11 (1.18%)
WTL 1.37 Increased By ▲ 0.01 (0.74%)
BR100 4,157 Increased By 2.4 (0.06%)
BR30 15,331 Increased By 42.8 (0.28%)
KSE100 41,621 Increased By 8.5 (0.02%)
KSE30 15,365 Increased By 4.8 (0.03%)
Markets

Rupee declines to nine-month low as import bill mounts

  • Pressure on currency comes amid widening current account deficit
Published July 19, 2021
Follow us

Pakistani rupee declined to its lowest value in almost nine months, losing close to one percent against the US Dollar in inter-bank trading on Monday.

At close, PKR declined to Rs161.48 against the dollar as per the State Bank of Pakistan (SBP).

Forex Association of Pakistan President Malik Bostan said that the rising import bill and increasing current account deficit have put pressure on the rupee. The country’s current account posted a massive $632-million deficit in May 2021 compared to a surplus of $329 million recorded in May 2020, recording the highest monthly deficit after December 2019.

Current account posts massive $632m deficit in May 2021

Bostan was of the view that the decision to end the amnesty scheme for the construction industry has put pressure on the rupee. "Both local and foreign investors were using their dollar reserves to invest in the construction sector. Now that it has ended, the flow of dollars has slowed down."

The amnesty scheme has been discontinued from the current fiscal year amid pressure from the International Monetary Fund (IMF).

Furthermore, exporters have not yet converted their proceeds into rupees, which has added to the pressure on forex markets, said Bostan. He also said that situation on the external front has worsened, and investor confidence has been hit amid the current political situation in Afghanistan and the Dasu dam incident.

PKR experiences net fall

Meanwhile, Tahir Abbas, Head of Research at Arif Habib Limited (AHL), said that the hike in USD value has come on the back of the free-floating rupee that is now determined by demand-and-supply forces. “With expected inflows, the pressure on PKR would reduce,” said Abbas.

Pakistan is due to receive loans from international lenders including the Asian Development Bank (ADB), and the IMF.

Comments

Comments are closed.

Rupee declines to nine-month low as import bill mounts

KP asks Wapda to pay Rs21bn

Govt debt stocks hit historic high of Rs50.152trn

Afghan suppliers: Coal importers making ‘informal’ payments

Oil prices rise after price cap on Russian crude, OPEC+ meeting

Petrol, diesel and LNG at discounted rates: Russian ministers due next month

Revolving fund account for CPEC IPPs approved: ECC allows import of 0.583MTs of wheat

Payables/receivables: Govt offered to seek resolution of dispute thru ICA, KE CEO tells Senate panel

Auditors’ appointment: SECP decides to take risk-based approach

New estimates place flood losses at $46bn

Afghanistan arrests ‘foreign IS member’ for embassy attack