If the IMF program is not restored, one dollar may go up to 320 Pakistani rupees, analysts. Photo: Social Media
Karachi: The Pakistani rupee has depreciated by 28 percent by the end of the current fiscal year, 2023, and one dollar was worth 286 Pakistani rupees in the intermarket on Tuesday.
According to an analysis by a major financial group, this is the third fiscal year in a row that the rupee has depreciated against the dollar and is estimated to depreciate by Rs. The value will depreciate further by 10 to 12 percent and one dollar may be equal to 320 Pakistani rupees.
It should be noted that during the fiscal year 2022, the value of the rupee had decreased by 22 percent and that year one dollar was equal to 204 Pakistani rupees.
Also read: The dollar fell in the interbank and open market
Tahir Abbas, head of research at Arif Habib Limited, told Express that the 28 percent depreciation of the rupee during 2023 is the biggest ever, due to pressure on external debt repayments, which led to a decrease in foreign exchange reserves. While the inflow of capital from foreign countries has also been affected due to the suspension of the IMF program.
He further said that the 1,300-point rise in the stock market on Monday and a slight improvement in the value of the rupee on Tuesday would suggest that the IMF would resume talks on a $6.7 billion loan program for Pakistan. The deadline for which is ending on June 30, however, the possibility of resuming negotiations with the IMF is seen as 50 percent because the country’s situation is still uncertain.
Also read: Fall in global and local gold prices
Tahir Abbas said that the future of the Pakistani rupee is in doubt because the IMF program is restored, so it is hoped that its value will stabilize against the dollar, after which other international institutions will also provide loans to Pakistan. will show their consent to do so, which will help a lot in increasing the foreign exchange reserves.
However, if the IMF program is not restored by the end of June, then the value of the rupee will remain uncertain and will continue to depreciate until Pakistan returns to the IMF in December this year or January next year. Start negotiations for a new program.
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