Connect with us

Hi, what are you looking for?

Online Business Success

Pakistani rupee drops to all-time low as IMF tranche talks fail

419047 123427 updates


A currency dealer is busy working. — AFP
A currency dealer is busy working. — AFP
  • Pakistani rupee continues its downward slide after delay in revival of IMF programme.
  • Pakistan and IMF have failed to reach a staff-level agreement.
  • Mounting political unrest shakes investors’ confidence in economy, putting pressure on the local unit.

KARACHI: Pakistan’s rupee hit a record low on Thursday of 202.50 in intraday trading against the US dollar, below the previous close of 201.92, after the failure of talks with the International Monetary Fund (IMF).

Pakistan and the IMF have failed to reach a staff-level agreement for the revival of the $6 billion programme as the Fund emphasised the “urgency of concrete policy actions, including removing fuel and energy subsidies.”

In line with the financial pundits’ predictions, the local currency continued its downward slide following the delay in the revival of the IMF programme.

Read more: IMF insists removal of petroleum subsidies to revive much-needed programme for Pakistan

The IMF assistance has been stalled since a disagreement with the previous government over energy subsidies in late February.

Pakistan is facing a fast depletion of foreign exchange reserves and analysts have been warning that the country is at risk of defaulting on its external debts.

The mounting political unrest, after the former prime minister Imran Khan marched towards the federal capital and gave a six-day ultimatum to the govt to force early elections, shook investors’ confidence in the economy, putting pressure on the local unit.

The country needs foreign inflows to bolster its forex reserves, which have fallen to $10.2 billion, enough to meet the cost of fewer than two months of imports.

Advertisement. Scroll to continue reading.

Read more: Saudi Arabia finalising extension of $3 billion deposit to Pakistan

The country is struggling with a soaring trade deficit fuelled by higher imports. And the rising yields on Pakistan’s international bonds indicate investor concern about the country’s precarious balance of payments position and increased risk that borrowers may face problems in future if external obligations worsen further.

These fears have led to the weakening of the local unit, which has depreciated by nearly Rs20 since the ruling coalition took office last month.

.



Source link

Click to comment

Leave a Reply

Latest

Top Stories

FTX founder Sam Bankman-Fried and Alameda Ventures made recent headlines for bailing out a handful of CeFi crypto platforms this week, but what exactly...

Top Stories

Although Bitcoin is struggling to form a bottom, altcoins are on a roll and the current price action could benefit UNI, XLM, THETA and...

Top Stories

Ethereum’s native token Ether (ETH) has declined by more than 35% against Bitcoin (BTC) since December 2021 with a potential to decline further in...

Top Stories

The company enables artists and collectors to create, purchase and resell NFTs via blockchain-enabled transactions. Source link

Technology

Interested in learning what’s next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit...

Top Stories

Bitcoin (BTC) made the most of weekend volatility on June 26 as a squeeze saw BTC/USD reach its highest in over a week. BTC/USD...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement