- Political uncertainty has been taking toll on local currency
ISLAMABAD: Finance Minister Dr Miftah Ismail Wednesday said that the government interventions in foreign exchange (forex) market cannot be made to control the rate of dollar in light of the commitment with the International Monetary Fund (IMF), well-informed sources told Business Recorder.
On Wednesday, the rupee closed at Rs236.02 against US dollar in interbank market as political uncertainty continues in the country.
Sharing his views on rising USD exchange rate and the consequent pressure on forex reserves at a high-level meeting, Miftah said that finalization of modalities to rationalize electricity tariff has led to a delay in the first tranche from the IMF.
He maintained that pressure on forex is due to demand for payments against the import bill from last month, worth $7.5 billion, adding that 2 billion litres of diesel is available with the country and the import bill for diesel is expected to be much lower next month. Similarly, there is no shortage of furnace oil for the current and next month, and therefore, energy related import pressures would be significantly lower in the coming months.
On current appreciation spree of dollar verses Pakistani rupee, he said that the government interventions in forex market cannot be made to control the rate of dollar in the light of commitment with the IMF, however, all other regulatory enforcement measures with the banks and currency exchange companies were being ensured.
He further stated that there had been an improvement in the tax returns during the last three months, adding that measures for agriculture sector with tax breaks would lead to improvement in agricultural produce. It was assured that the issue of US dollar rate and pressure on forex reserves will be alleviated and the exchange rate expected to stabilize from August onwards.
Copyright Business Recorder, 2022