BAFL 38.45 Decreased By ▼ -0.16 (-0.41%)
BIPL 17.25 Increased By ▲ 0.46 (2.74%)
BOP 4.07 Increased By ▲ 0.12 (3.04%)
CNERGY 3.08 Decreased By ▼ -0.03 (-0.96%)
DFML 16.55 Increased By ▲ 0.30 (1.85%)
DGKC 43.80 Increased By ▲ 0.05 (0.11%)
FABL 22.30 Increased By ▲ 0.15 (0.68%)
FCCL 11.31 Increased By ▲ 0.36 (3.29%)
FFL 6.37 Increased By ▲ 0.07 (1.11%)
GGL 9.49 Decreased By ▼ -0.09 (-0.94%)
HBL 90.50 Decreased By ▼ -2.00 (-2.16%)
HUBC 87.70 No Change ▼ 0.00 (0%)
HUMNL 5.49 Decreased By ▼ -0.01 (-0.18%)
KEL 2.01 Increased By ▲ 0.06 (3.08%)
LOTCHEM 28.50 Increased By ▲ 0.24 (0.85%)
MLCF 30.20 Increased By ▲ 0.74 (2.51%)
OGDC 98.20 Increased By ▲ 2.13 (2.22%)
PAEL 9.99 Decreased By ▼ -0.06 (-0.6%)
PIBTL 3.89 Decreased By ▼ -0.01 (-0.26%)
PIOC 85.25 Increased By ▲ 0.50 (0.59%)
PPL 74.60 Increased By ▲ 1.70 (2.33%)
PRL 15.32 Decreased By ▼ -0.08 (-0.52%)
SILK 0.97 Increased By ▲ 0.03 (3.19%)
SNGP 46.80 Increased By ▲ 0.37 (0.8%)
SSGC 9.36 Increased By ▲ 0.23 (2.52%)
TELE 6.96 Increased By ▲ 0.04 (0.58%)
TPLP 12.33 Increased By ▲ 0.01 (0.08%)
TRG 90.15 Increased By ▲ 1.11 (1.25%)
UNITY 25.39 Decreased By ▼ -0.10 (-0.39%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,656 Increased By 12.1 (0.26%)
BR30 16,663 Increased By 117.9 (0.71%)
KSE100 46,365 Increased By 87.4 (0.19%)
KSE30 16,172 Increased By 20.7 (0.13%)

Cash-strapped Pakistan is unlikely to devalue its currency again as pressure on the rupee has eased, Fitch Ratings, a US-based American credit rating agency, was quoted as saying by Bloomberg in a report on Friday.

“We currently do not expect a large further devaluation of the Pakistan rupee,” said Krisjanis Krustins, a Hong Kong-based director at Fitch, in an emailed response quoted by Bloomberg.

“Although the currency has been very stable over the past few months, pressure on the reserves of the State Bank of Pakistan has also been contained, which suggests minimal interventions to support the currency,” Krustins said.

2023-24: Finance Minister Ishaq Dar says 3.5% growth targeted in ‘responsible budget’

Since falling to the lowest level of 298.93 on 11th May, the Pakistani rupee has remained stable and has been hovering in the range of 284-287 in the inter-bank market. However, the currency has lost over 21% of its value this calendar year, making it one of the worst performers globally.

Moreover, the central bank’s foreign exchange reserves remain at under $4 billion, raising concerns on Pakistan’s ability to service its debt and pay off loans.

At the same time, Pakistan remains in talks with the International Monetary Fund (IMF) for resumption of the bailout programme, which has been stalled at the ninth review, while talks on the staff-level agreement have dragged on over securing necessary financing assurances to bridge the balance of payments gap.

Delay in IMF programme ‘unprecedented’, says Dar

“We continue to assume that the IMF and Pakistan will conclude the ongoing programme review, likely after the IMF has clarity on the budget,” Krustins said. “However, the window for this is rapidly closing, with the programme originally set to expire in June, and substantive progress unlikely in the immediate run up to elections due by October.”

Last month, Nathan Porter, IMF Mission Chief to Pakistan, said it is continuing engagement with the Pakistani authorities – focusing on restoration of foreign exchange proper market functioning, the passage of the fiscal year 2024 budget consistent with program goals, and adequate financing – to pave the way for a Board meeting before the current program expires at June-end.

The shortage of dollars has prompted talks of debt restructuring in Pakistan with Finance Minister Ishaq Dar on Saturday saying that the government is speaking to its bilateral creditors to restructure its debt.

“There is no plan to go to multilateral development institutions, requesting them to reschedule our debt,” he said during the post-budget press conference.

“However, we could negotiate bilateral loans and will talk to our bilateral partners after the budget process is over,” he said.


Comments are closed.

Tahir Shah Jun 11, 2023 09:55am
Eye opening decisions are required like legislation regarding hoarding of dollar for profit motives.
thumb_up Recommended (0)

Fitch does not ‘expect large further devaluation of Pakistani rupee’: report

Pakistan receives first shipment of Russian LPG, Russian embassy says

Open-market: rupee appreciates further against US dollar

Pakistan seeks Chinese assistance in EV technology

Pakistan seeks two LNG cargoes for winter

Pink eye outbreak: schools in Punjab to remain closed for 4 days

At least 8 dead, 5 injured in rocket launcher shell explosion in Sindh’s Kandhkot

Indus Motor Company announces another plant shutdown

Oil prices climb as markets focus on supply tightness

EPCL extends gas supply deal with SSGC till October 15

After IB, Pemra also withdraws review petition against Faizabad sit-in case verdict