Rupee touches record low against dollar in inter-bank trade

Lahore – The rupee was in free fall in the inter-bank market on Tuesday morning as it shed more than Rs11 against the US dollar over fears that the International Monetary Fund (IMF) conditions for a loan will further devalue the Pakistani currency.

The rupee went past Rs138 to a dollar during the day’s trading session. Traders said fears of devaluation increased demand for the greenback from importers and added that the local currency is continuously showing weakness.

On the other hand, the stock market opened on a strong note on Tuesday after losing 1,300 points on Monday. In the morning session, the KSE-100 index gained 1,100 points to break the psychological barrier of 39,000 points.

On Monday, the government announced to seek IMF’s help to cope with the country’s financial crisis. Finance Minister Asad Umar vowed to revive the economy on a sustainable and permanent basis and promised steps to provide relief to common people.

Speaking on Tuesday at a news conference at the IMF and World Bank annual meetings in Bali, Indonesia, IMF Chief Economist Maurice Obstfeld said that Pakistan has not formally approached institution for financial assistance.

Obstfeld said that Pakistan faced financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency, which he described as “too rigid” and over-valued. China’s involvement in Pakistan’s economy could bring both benefits and risks, Obstfeld added.

Prime Minister Imran Khan, who has been reluctant to ask the IMF for emergency loans, said last week Pakistan might need to return to the IMF to address its mounting balance of payments crisis. If there is an IMF bailout package, it would be the second for Pakistan in five years.

Pakistan needs more infrastructure development, Obstfeld added, and the country could benefit from China’s role in supporting its project financing. But China’s involvement could also bring potential risks, he said. “It is important that the design of the projects… be solid and excessive debts which cannot be repaid are avoided,” he said.

Chinese officials have rejected the criticism that the China-Pakistan Economic Corridor (CPEC) projects have saddled Pakistan with unsustainable debts. Instead, the Chinese maintain, they have boosted the country’s economic growth and provided 70,000 jobs.

"Monitoring Desk"

RELATED POSTS

2
Six Pakistani entrepreneurs graduate from UNCTAD, Alibaba’s fellowship
China donates Rs6m more to families of martyred cops
Pakistan coming on track by enhanced export, trade volume with neighboring countries
China says it hopes US can show sincerity on trade
Pak-China air forces to conduct joint exercise
Pak, Kazakhstan strong bilateral trade ties improving day-by-day: Haroon Sharif
Sindh CM’s adviser lashes out at ex-CEO of Thar mining firm
Govt asked to rehabilitate infrastructure in Bara
PDWP approved 37 projects of energy & power sector cost Rs138473 MILLION
Power plants set up by Turkish companies: President Alvi faced embarrassment?
Pakistan, China yet to finalise Gwadar projects
China working with Pakistan to invite third-party companies to join CPEC
New major highway planned in Balochistan under CPEC
CPEC projects security reviewed, vigilance demanded
China needs to play important role to promote CPEC construction in new era

FOLLOW US


About Corridor.pk

Corridor.pk is Pakistan’s leading regional connectivity media & communication/outreach platform, dedicated to profiling and promoting the business activities, news and views on the regionally connected business corridor across OBOR. 

     

Addional Information

 Ethics Policy     Advertise
 Terms & Conditions
 Contact Us