Pakistani rupee sinks to record low against dollar

[UmarJustice]

The Pakistani rupee on Monday sank to an all-time low against the US dollar over forex reserve fears as the country repayed $146 million to the International Monetary Fund.

The rupee fell to 100.1 to the greenback in trading in Karachi, down from 99.30 on the open market Friday, and has now lost 39 percent of its value against the US currency since March 2008.

"We have traded the dollar at 100.1 rupees, although there is a slight difference on the open market," said currency dealer Mohammad Arshad.

The official inter-bank rate for the dollar is 98 rupees, but Mohammad Sohail, who heads brokerage firm Topline Securities, confirmed it had crossed 100 on the open market.

Pakistan had a $10.7 billion IMF loan until September, but had drawn only about a third of it. The government has indicated it would not seek a new loan.

Pakistan repaid $145.79 million to the IMF on Monday and is scheduled to repay another $375 million on February 26, according to Syed Wasimuddin, spokesman for the country's central State Bank.

So far Pakistan has repaid $2.57 billion, $1.5 million this fiscal year, ending June 30, according to the central bank.

"The rupee is likely to remain under pressure because of IMF repayments," said Sohail.

"The foreign exchange reserves have declined to $8.7 billion as of January 31 from $10.8 billion at end-June 2012," said the central bank last week.

The IMF last November urged Pakistan to reduce its large budget deficit to bolster the struggling economy's resiliency, noting that foreign exchange reserves under $10 billion were below adequate levels.

Pakistani rupee sinks to record low against dollar | The Nation

Congrats to Zardari, PPP, and MQM.

 

[RazorMC]

Another gift from the PPP-led regime.

Their complete mismanagement of the economy, allowing illeterate individuals to become MPAs and MNAs and constantly filling their pockets at the expense of the Pakistani tax-payer are the reasons that we are in this situation today.

The sooner this regime ends, the better it will be for Pakistan.

 

[KRAIT]

Economy and terrorism is the major worry of Pakistan. Hope people get serious about these issues rather than offering and asking for protection of Indian actors.

 

[Splurgenxs]

Pkr are consistently remained alprox double of INR...since INR is at 53 right now Pakistan is remaining true to form =P

 

[scofield123]

Another gift from the PPP-led regime.

Their complete mismanagement of the economy, allowing illeterate individuals to become MPAs and MNAs and constantly filling their pockets at the expense of the Pakistani tax-payer are the reasons that we are in this situation today.

The sooner this regime ends, the better it will be for Pakistan.

pakistan ka ab kya hoga .....mujhe tension ho rahi hai..

 

[RazorMC]

pakistan ka ab kya hoga .....mujhe tension ho rahi hai..

A capable administration will be able to translate this low PKR value into FDI.

It will require a lot of work on the energy sector, terrorism will need to be addressed quickly and some major infrastructure projects will need to be completed within the next 2-3 years. High interest rates plus development will help in boosting Pakistan's economy.

Otherwise we are looking at another PPP-PML(N) gentlemen's agreement where the Pak economy can go to the dogs.

 

[Contrarian]

Great time to visit Pakistan and live like a king!

 

[Echo_419]

A capable administration will be able to translate this low PKR value into FDI.

It will require a lot of work on the energy sector, terrorism will need to be addressed quickly and some major infrastructure projects will need to be completed within the next 2-3 years. High interest rates plus development will help in boosting Pakistan's economy.

Otherwise we are looking at another PPP-PML(N) gentlemen's agreement where the Pak economy can go to the dogs.

I think you mean low Intrest rates

 

[BLACKEAGLE]

Great time to visit Pakistan and live like a king!

You can stay in India BTW and live like a king. 1 INR = 0.0185700 USD

 

[third eye]

Rs 100 is high, feel sorry for those traveling abroad.

INR 53 pinches..

 

[RazorMC]

I think you mean low Intrest rates

No. I meant high interest rates, esp when compared to other countries.

Low interest rates assist local industries but our banks are already forced to finance the government's budget leaving relatively little cash for private loans etc. A higher rate of interest brings in much needed deposits in the short-term and improves our foreign reserves.

The rates can be gradually lowered over the coming years to ease the funds into the money supply without causing any major upset to the system.

Rs 100 is high, feel sorry for those traveling abroad.

INR 53 pinches..

It's a bounty for overseas Pakistanis remitting money to their families back home.

 

[hellboy007]

No. I meant high interest rates, esp when compared to other countries.

Low interest rates assist local industries but our banks are already forced to finance the government's budget leaving relatively little cash for private loans etc. A higher rate of interest brings in much needed deposits in the short-term and improves our foreign reserves.

The rates can be gradually lowered over the coming years to ease the funds into the money supply without causing any major upset to the system.




It's a bounty for overseas Pakistanis remitting money to their families back home.

I think it's a two edged sword with one edge much more sharper than the other. It's true remittance families will benefit but economy will suffer a lot more. But the question remains that where was the money used?
Was it used in something that gave dividends or was it gulped down by the politicians. If the case was lattter one then it's a serious issue. Cause doing corruption in Loan money is like playing with fire.

 

[INDIC]

You can stay in India BTW and live like a king. 1 INR = 0.0185700 USD

Many US born Indians are returning back to India after slowdown in US and greater economic opportunities in India.

 

[RazorMC]

I think it's a two edged sword with one edge much more sharper than the other. It's true remittance families will benefit but economy will suffer a lot more. But the question remains that where was the money used?
Was it used in something that gave dividends or was it gulped down by the politicians. If the case was lattter one then it's a serious issue. Cause doing corruption in Loan money is like playing with fire.

You can't do so much corruption with remittances. Afterall, the money (in USD) is credited to the Pakistani coffers and the remitters family simply withdraws the amount in PKR. The family gets the money and Paksitan gets the dollars, simple. Politicians can't do anything here.

They can only rob the state where the budget and financial distribution is concerned.

 

[INDIC]

You can't do so much corruption with remittances. Afterall, the money (in USD) is credited to the Pakistani coffers and the remitters family simply withdraws the amount in PKR. The family gets the money and Paksitan gets the dollars, simple. Politicians can't do anything here.

They can only rob the state where the budget and financial distribution is concerned.

When your imports are more than exports, in that case rupee fall will always brings more difficulty for the economy.