Bleak economic macros keep dragging Pakistani rupee down
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The Pakistani rupee continued its downward slide as the local unit lost its value by just one paisa in the interbank trading, reported 24NewsHD TV channel.
According to the money dealers, the US dollar refused to budge on Wednesday and gained one paisa in its value during the trading activity. The American currency closed the day at Rs224.71.
Interbank closing #ExchangeRate for todayhttps://t.co/jJ9bEsOzlj pic.twitter.com/L0SRURSrdh
— SBP (@StateBank_Pak) December 14, 2022
Yesterday, the Pakistani rupee shed 5 paisa and settled the trade at Rs224.70.
Interbank closing #ExchangeRate for todayhttps://t.co/wfvF0sSUHK pic.twitter.com/gLBeIITzWE
— SBP (@StateBank_Pak) December 13, 2022
The local unit is under pressure due to bleak economic indicators, political uncertainty and concerns regarding default in the face of delayed IMF talks on the ninth review.
During a TV talk show last night, Finance Minister Ishaq Dar and former finance head Miftah Ismail differed on country’s default perspectives.
Dar was of the view that country’s performance criteria were up to the mark and complete for the IMF ninth review. While, Miftah insisted that the default risk would persist unless the Fund came to the table.
However, IMF Resident Representative in Pakistan Esther Pérez Ruiz said in a statement issued on Tuesday that the discussions between the IMF and the government to date in the context of the 9th review of Pakistan's Extended Arrangement under the Extended Fund Facility (EFF) have been productive.
Discussions have enabled a revision to the macroeconomic outlook post floods as well as an in-depth evaluation of fiscal, monetary, exchange rate, and energy policies adopted since the completion of the combined seventh and eighth reviews, she added.
Pakistan is facing shortage of dollars which could be attributed to a number of factors including dollars’ smuggling to neighboring countries, emergence of black market, and payments to foreign lenders.
To avert further dollar dearth, the Federal Board of Revenue (FBR) on Tuesday imposed cash carrying limit of $5,000 for travelling abroad.
For individuals 18 years and above, the maximum limit per person per visit in US$ (or equivalent in other foreign currencies) is $5,000 and annual limit per person in US$ (or equivalent in other foreign currencies) is $30,000.
For individuals below 18 years, the maximum limit per person per visit in US$ (or equivalent in other foreign currencies) is $2,500 and annual limit per person in US$ (or equivalent in other foreign currencies) is $15,000.