The rupee broke its losing trend and gained Rs2.50 in interbank trading
After the government began rolling back fuel subsidies, the rupee broke its losing trend and gained Rs2.50 in interbank trading
Following the government’s decision to increase the gasoline price ceiling in accordance with IMF requirements, the rupee finally ended its losing skid against the dollar on Friday, gaining Rs2.50 in early morning interbank trading (IMF).
The dollar was trading at Rs199.50 at 10:38am, down from Thursday’s closing of Rs202, according to the Forex Association of Pakistan (FAP).
Due to the country’s mounting import bill, expanding current account deficit, and dwindling foreign currency reserves, the rupee’s value has fallen steadily since May 10.
The dollar’s value has increased by Rs19 since the PML-N-led coalition government entered office on April 11 when it was worth Rs182.30.
Because the government decided to withdraw gasoline subsidies Malik Bostan, FAP Chairman, claimed the rupee went higher. This, we hope, opens the door to an IMF loan and a quick resolution to the rupee’s woes, as stated before.
As a result, foreign currency reserves would increase, he said.
An hike in gasoline prices overnight constituted a “major move” toward restoring Pakistan’s IMF programme, according to Zafar Paracha, secretary general of Pakistan’s Exchange Companies Association.
With the “doomsday scenario” of a default averted, he said, “it is helping the KSE-100 recoup some of its steep losses earlier this month” and bringing confidence to foreign currency markets.
Fuel subsidies, which have stymied discussions with the International Monetary Fund (IMF) and a $6 billion facility, have been reduced by Rs30 per litre on Wednesday night, the highest-ever rise in the price of all petroleum products at one time, according to government officials.
According to an official who spoke to Dawn, this was the first step towards urging the IMF to deliver the next $1billion at the earliest possible time.
Ismail stated his expectation that the exchange rate would stabilise and markets would stabilise, which would lead to improved market stability and a more stable economy.
Ex-depot prices for petrol, high-speed diesel (HSD), kerosene, and light diesel oil (LDO) will rise by Rs30 each, according to the finance minister. Nevertheless, he noted, the government will pay Rs56.71 for HSD, Rs37.84 for LDO, Rs21.83 for petrol, and Rs17.02 for kerosene in subsidies per litre.
