The US dollar soared against the Pakistani rupee on Monday, hitting a fresh all-time high in the interbank market.
The Pakistani rupee continued to fall against the US dollar, losing another Rs1.60 in the interbank market to settle at Rs172.78.
According to figures provided by the State Bank of Pakistan (SBP), the rupee has depreciated 9.67 percent (or Rs15.24) from the start of the current fiscal year on July 1, 2021.
According to central bank data, it has lost 13.46 percent (or Rs20.51) since reaching a recent high of Rs152.27 versus the greenback on May 14, 2021.
Prime Minister Imran Khan remarked last week at the opening of the Kisan Portal that the pressure on the Pakistani currency is only transitory and would pass shortly.
The major reason for the rise in the dollar’s value and the depreciation of the rupee, according to economists, is Pakistan’s current account deficit and the IMF’s demand for further depreciation of the rupee.
Analysts had previously projected that the decline would cease shortly, citing the successful conclusion of talks between the IMF and Pakistan to begin a $6 billion loan program as a reason for the rupee’s stabilization at present levels.
“If policy negotiations between Pakistan and the IMF are successful during the three days from October 13 to 15, the rupee volatility would cease,” Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq.
PM Imran Khan has called a meeting to discuss soaring inflation
Meanwhile, reports claim that Prime Minister Imran Khan is holding a meeting to discuss inflation and the country’s economic position.
The premier is anticipated to make a major statement on public assistance during this meeting, according to insiders.
According to sources, the Prime Minister has devised a strategy to cope with growing inflation and popular reaction to it. According to reports, he would provide a briefing to the relevant authorities on his plans.
The provincial chief secretaries have also been brought on board, according to the sources, and have been directed to inform the deputy commissioners.