The Pakistani rupee’s value sharply dropped in the interbank trading on Thursday with the local currency falling by Rs19.98 against the US Dollar.
According to forex dealers, the local currency closed at Rs285.09 in the interbank market against USD. In the open market, the greenback was being traded at Rs290, said forex dealers. The local unit closed at 266.11 in the interbank the other day.
Analysts and economists said that devaluation in the National Currency is all due to the delay in signing the staff-level agreement with the International Monetary Fund (IMF), as well as the impending policy rate hike by the central bank.
Remember that IMF asked Pakistan to implement demands before reaching a staff-level agreement for the revival $7 billion Extended Fund Facility (EFF) stalled for months.
Sources further claimed that Islamabad was continuously receiving new Memorandum of Economic and Financial Policies (MEFP), while further demands were being tabled by amending the clauses of agreement.
The IMF has tabled four more conditions before reaching a staff level agreement, sources claimed, adding that the government was forced to implement surcharge of Rs3.82 on electricity permanently instead of four months.
Meanwhile, the lender also demanded to increase interest rate ahead of staff level agreement. In this regard, the State Bank of Pakistan (SBP) preponed its Monetary Policy Committee on March 2 — two weeks earlier than scheduled.
It was reported that the International Monetary Fund (IMF) and Pakistan moved closer to the revival of the $7 billion Extended Fund Facility (EFF) as the IMF responded to the Memorandum of Economic and Financial Policies (MEFP) draft and soon the revival of $7 billion Extended Fund Facility (EFF) will be completed.
