Ongoing storm of economic crisis where the country is left with only 1.54 months cover for the import bill, economic managers being clueless and hesitant regarding unpopular decision making, has provided the maximum ground to the US dollar to beat the Pakistani rupee by 7.6 rupees in the departed week as the currency settled week’s trade at PKR 200, compared to the previous week’s close of 192.53 per USD.

In last session of the seek, the Pakistani rupee was traded in a range of 1.4 rupees per USD showing an intraday high bid of 200.50 and an intraday low offer of 200, depreciating by 14 paisa by the end of the session.

The elevated demand for the dollar amid panic created by uncertain market conditions and delay in the IMF tranche has finally crossed the psychological mark of PKR 200 in yesterday’s session, which was termed by experts as “Black Day” in history.

In addition, the dollar hoarding, speculative elements and SBP’s silence have added more fuel to the fire.

Regarding IMF, Zafar Paracha, President of Exchange Companies Association of Pakistan said, “it has raised concerns over the subsidy on petroleum products given by Pakistani government and Pakistan side had agreed to roll back the subsidies, however, the relief package is still being provided.”

He said, “It seems that financial assistance from Saudi Arabia and China is now conditional to the IMF’s allocation of $1bn to Pakistan.”

However, the talks with IMF have started during the outgoing week and if the talks remain in favour of Pakistan, the pressure from the exchange rate will be eased off.


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