The rupee\u2019s losses continued on Thursday as the local currency dropped to a record low of Rs240.5 against the dollar in the interbank market.<\/p>\n
According to the Forex Association of Pakistan (FAP), the rupee lost 4.48, or 1.89 per cent, compared to yesterday\u2019s close of 236.02 by 12:03pm.<\/p>\n
Consequently, the rupee was trading at 240.5 against the greenback.<\/p>\n
Exchange Companies Association of Pakistan General Secretary Zafar Paracha laid the blame squarely on the country\u2019s political situation and the government\u2019s lack of action.<\/p>\n
\u201cThe country\u2019s political situation is bad but the government and political parties appear to be unconcerned. They are only concerned with saving their government,\u201d he rued.<\/p>\n
Paracha pointed out that ratings agencies had downgraded Pakistan\u2019s outlook while the tranche expected to be released by the International Monetary Fund (IMF) had reportedly been delayed.<\/p>\n
In addition, there was uncertainty about whether the Fund\u2019s executive board would demand more actions prior to the tranche\u2019s release.<\/p>\n
The real reason for the rupee\u2019s decline was that \u201cwe are not doing what we are supposed to do and not taking any practical steps\u201d, he said.<\/p>\n
The financial situation had worsened due to mismanagement and lack of attention, the currency dealer said.<\/p>\n
In order to stop the rupee\u2019s freefall, the government should incentivise exchange companies and overseas Pakistanis, link imports to exports, and reduce its expenditures, he opined.<\/p>\n
\u201cThe public is playing its role and paying taxes but those responsible do not seem to be doing anything,\u201d Paracha added.<\/p>\n
Mettis Global Director Saad bin Naseer said the reason was the \u201csupply issue\u201d as banks were short of dollars. \u201cThe supply is there and remittances are at their regular level but \u2026 inflows are not as expected.\u201d<\/p>\n
The banks were still giving importers money, he noted. \u201cThere is panic in the market, which will remain unless the State Bank intervenes.\u201d<\/p>\n
Naseer was of the opinion that the SBP would intervene now as the market had reached an \u201cextraordinary level\u201d, after which the panic would start easing.<\/p>\n
CEO of Topline Securities, Mohammad Sohail, said one of the reasons behind the rupee\u2019s fall was \u201creduced interference\u201d by the State Bank of Pakistan (SBP).<\/p>\n
In addition, the government may be allowing the local currency to be weakened to curtail imports, he added.<\/p>\n
He also cited the political situation in the country for the sustained pressure on the rupee, adding that it may remain till the release of the IMF tranche.<\/p>\n","protected":false},"excerpt":{"rendered":"
The rupee\u2019s losses continued on Thursday as the local currency dropped to a record low of Rs240.5 against the dollar in the interbank market. According to the Forex Association of Pakistan (FAP), the rupee lost 4.48, or 1.89 per cent, compared to yesterday\u2019s close of 236.02 by 12:03pm. Consequently, the rupee was trading at 240.5 […]<\/p>\n","protected":false},"author":2,"featured_media":239652,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[181,9876,7105,722],"class_list":{"0":"post-274098","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-dollar","9":"tag-freefall","10":"tag-interbank","11":"tag-rupee"},"yoast_head":"\n