'We assume IMF board approval of Pakistan's new staff-level agreement with the lender,' Krisjanis Krustins, a Hong Kong-based director at Fitch, was quoted as saying by Bloomberg on Wednesday. Once the deal amount will be secured, it is expected that pressure on the country's currency and forex reserves will ease.

This downfall of Pakistani rupees comes as Moody's Investors Service and Fitch Ratings said they expect Pakistan to secure the USD 1.2 billion bailout from the International Monetary Fund (IMF). He said that multiple factors including the US dollar reaching historic highs internationally, interest rate hikes, worldwide inflation and supply chain disruption have led to the rupee's depreciation.Įarlier this month, the IMF reached a staff-level agreement with Pakistan authorities for the conclusion of the combined seventh and eighth reviews of the Extended Fund Facility (EFF).ĭespite the agreement, the ongoing political and economic turmoil in the country has raised concerns among investors, Pakistan's Business Recorder reported. Therefore, pressure on the rupee would subside and the currency would appreciate,' said Ismail. 'From the next month onwards, incoming dollars in Pakistan by way of exports and remittance will be more than the outgoing dollars by the way of imports and debt servicing. Forex reserves stand at USD 7.8 billion - hardly enough for over a month of imports.Įxchange Companies Association of Pakistan (ECAP) General-Secretary Zafar Paracha told Arab News that the local unit’s fall - among other reasons - was due to its smuggling to Afghanistan, where sellers get higher rates.On Wednesday, Pakistan Minister for Finance and Revenue Miftah Ismail expressed hope that the pressure on the rupee would ease in a couple of weeks. He also cited depleting foreign reserves held by the State Bank of Pakistan (SBP) as a reason for the fall. Moreover, the UAE has made it mandatory for Pakistani travellers to declare 5,000 dirhams at the airport when landing - leading to an increase in the price of the US dollar in the open market.Įconomist and former adviser to the federal ministry of finance Dr Khaqan Hassan Najeeb said the rupee is slipping not only because of the dollar’s global strengthening but also due to recent political developments - causing jitters in the market, reported Geo News. Once Pakistan gets the loan from the IMF, experts are predicting that the country will get additional funds from multilateral and bilateral organisations - giving a further boost to the depleting forex reserves, reported Geo News.Īpart from the pressure of the IMF, the government has also lifted the months-long ban on the import of luxury items and the exports have not increased at desired pace - resulting in pressure on the rupee. The acting governor hoped that the country’s forex reserves will shore up to USD 16 billion by the end of the current fiscal year 2022-23.

In an interview with Bloomberg TV, State Bank of Pakistan Acting Governor Murtaza Syed said that Pakistan is likely to receive a USD 1.17 billion loan tranche from the IMF within six days after the Executive Board’s approval, reported Geo News.Īs per Syed, the country’s forex reserves dropped to USD 8 billion due to delays in the revival of the IMF agreement and external flows. Karachi, August 25 (ANI): Ahead of the International Monetary Fund’s (IMF) executive board meeting on August 29 in Washington, the Pakistani rupee continued to decline against the US dollar on Thursday.Īfter losing 0.62 paisas against the dollar as of 11 am, up from yesterday’s close of 218.38, the local unit was trading at 219 during intraday trade in the interbank market, reported Geo News.Įconomic experts have said that the pressure on the rupee will continue till the IMF board’s approval of disbursing the USD 1.17 billion tranches for Pakistan.

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