ISLAMABAD: (Ahmed Mughal):- The US dollar has hit new height as it has reached at Rs.146.25 today after two day of conclusion of Pak-IMF talks for loan program folded with of prior conditions.
The Dollar surged from Rs141 to Rs.146.25 when forex market opened today. This is the highest level in the history of the country. But, the dollar fell down at Rs.144 when market closed.
Due to this development, the dollar increased by Rs2.25 in one day. This growth put further burden on the nation more than Rs.300 billion of foreign debt without new lending in one day.
The analysts believe the appreciation in dollar against Pak-rupee is the result of IMF prior conditions for the loan program.
According the the statement of IMF, “a market-determined exchange rate will help the functioning of the financial sector. It will also contribute to a better resource allocation in the economy. The authorities are committed to strengthening the State Bank of Pakistan’s operational independence and mandate”, it further said.
The increase came following Pakistan’s agreement with the IMF of a $6 billion bailout on Sunday.
At the start of the week, Pakistani stock market also took it negative as it fell down visibly on Monday.
For more than a year now Pakistan has struggled to stave off a looming balance-of-payments crisis. While, its economy due to low growth, soaring inflation, and mounting debt.
According to the statement of the State Bank of Pakistan, the forex reserve of the country is at $15.97 billion on 03 May 2019.
The State Bank has $8.98 billion net foreign reserves which is not even enough import bill of one and half month. On the commercial banks has Net foreign reserves $6.988 billion.
This situation shows that govt has facing serious challenges to bridge the gap between foreign obligation and available resources.