The interbank market closing price for the rupee was Rs234.32, continuing its downward trend.
The interbank market closing price for the rupee was Rs234.32, continuing its downward trend.
On the interbank currency exchange market, the value of the local unit decreased by Rs2.40, closing at Rs234.32 versus the dollar. It had previously closed at Rs231.92.
Karachi: Wednesday marked the ninth straight session of decline for the Pakistani rupee against the US dollar as the country's dire economic circumstances, and widespread floods took their toll.
State Bank of Pakistan reported the local unit declined by Rs2.40 in the interbank market.
Political instability has put investors on edge, in addition to the floods that have clouded the relaunch of the International Monetary Fund's (IMF) project.
Since Imran Khan's government was toppled in April, Pakistan has been plagued by constant political instability. Even though the current administration has been in power for a while, investors still have many reservations about its policies.
On Geo. tv, Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), emphasized the importance of bringing all parties involved in Pakistan's problems together to find solutions.
The IMF loan is expected to cause the rupee to appreciate against the dollar, as stated by an ECAP official, and this is precisely what happened: the rupee gained Rs2.
However, he pointed out that the decline has persisted since then, albeit with some minuscule improvements, because the country has not received funds from multilateral or bilateral organizations despite the global lender's assistance.
Paracha continued by saying that Pakistan can still not attract investment and financing from the World Bank, the Asian Development Bank, and even friendly countries like Saudi Arabia, the United Arab Emirates, and Qatar.
Since the PTI administrations in Punjab and KP indicated that they would not complete the IMF conditions on the day that the IMF's Executive Board was ready to authorize handing over the funds to Pakistan, Paracha attributed the delay to "political instability" as the primary cause.
"That had an adverse effect. PTI rules a significant portion of the country and this is important [...] but at the moment, we need political stability and the administration has no clear vision "(Sobbed).
According to Paracha, even if they are in the government, the parties act like they are in the opposition. "Nobody is doing anything to help the populace, and nobody is even trying to get the economy back on its feet. In this situation, everyone is looking for someone to blame."
However, Paracha did not direct all his criticism to government officials; he gave credit where credit was due, claiming that the State Bank of Pakistan (SBP) had played a successful role through several different initiatives.
Paracha continued by saying that government officials had put the cost of flood damage at roughly $30 billion, but he was afraid it could be closer to $50 billion.
He said the losses are tremendous, but we have not received enough aid to cover them.
At least 33 million people have been displaced from their homes, and about 1,400 have been killed due to floods caused by record monsoon rains and glacier melt in the hilly north, which have also destroyed highways, trains, cattle, and crops.
He also noted that the government's decision to import products from Iran and Afghanistan had put a strain on the local currency. On the interbank currency exchange market, the value of the local unit decreased by Rs2.40, closing at Rs234.32 versus the dollar. It had previously closed at Rs231.92.
Karachi: Wednesday marked the ninth straight session of decline for the Pakistani rupee against the US dollar as the country's dire economic circumstances, and widespread floods took their toll.
State Bank of Pakistan, the local currency, dropped 2.40 rupees on the interbank market, from Rs231.92 to Rs234.32.
Political instability has put investors on edge, in addition to the floods that have clouded the relaunch of the International Monetary Fund's (IMF) project.
Since Imran Khan's government was toppled in April, Pakistan has been plagued by constant political instability. Even though the current administration has been in power for a while, investors still have many reservations about its policies.
On Geo. tv, Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), emphasized the importance of bringing all parties involved in Pakistan's problems together to find solutions.
The IMF loan is expected to cause the rupee to appreciate against the dollar, as stated by an ECAP official, and this is precisely what happened: the rupee gained Rs2.
However, he pointed out that the decline has persisted since then, albeit with some minuscule improvements, because the country has not received funds from multilateral or bilateral organizations despite the global lender's assistance.
Paracha continued by saying that Pakistan can still not attract investment and financing from the World Bank, the Asian Development Bank, and even friendly countries like Saudi Arabia, the United Arab Emirates, and Qatar.
Since the PTI administrations in Punjab and KP indicated that they would not complete the IMF conditions on the day that the IMF's Executive Board was ready to authorize handing over the funds to Pakistan, Paracha attributed the delay to "political instability" as the primary cause.
"That had an adverse effect. PTI rules a significant portion of the country and this is important [...] but at the moment, we need political stability, and the administration has no clear vision "(Sobbed).
According to Paracha, even if they are in the government, the parties act like they are in the opposition. "Nobody is doing anything to help the populace, and nobody is even trying to get the economy back on its feet. In this situation, everyone is looking for someone to blame."
However, Paracha did not direct all his criticism to government officials; he gave credit where credit was due, claiming that the State Bank of Pakistan (SBP) had played a successful role through several different initiatives.
Paracha continued by saying that government officials had put the cost of flood damage at roughly $30 billion, but he was afraid it could be closer to $50 billion.
He said the losses are tremendous, but we have not received enough aid to cover them.
At least 33 million people have been displaced from their homes, and about 1,400 have been killed due to floods caused by record monsoon rains and glacier melt in the hilly north, which have also destroyed highways, trains, cattle, and crops.
He also noted that the government's decision to import products from Iran and Afghanistan had put a strain on the local currency.
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