LAHORE: The Pakistani rupee is predicted to touch Rs 147 in coming weeks asprojected in a report.

At the same time Pakistani Rupee is said to be the cheapest currency inSouth Asia, according to Renaissance Capital.

IMF has reportedly asked Pakistan to devalue currency to the extent of Rs150 equivalent to one US dollar.

Renaissance Capital says Pakistan’s most recent devaluation takes the rupeeto just 4 percent below its long-term average rate (1995-2018).

The PKR has never been more than 13 percent weak (PKR147 equivalent) to itsreal effective exchange rate (REER) average rate since 1995 but may beatthat in coming months, Renaissance Capital predicted.

Renaissance Capital considers Pakistan among the three vulnerable emergingmarkets alongside Turkey and Argentina and one investor told them the IMFis looking for rupee at Rs147 to a dollar – which would take it to a 13percent discount to the long-term average rate.

The International Monetary Fund (IMF) has currently projected Pakistan’scurrent account deficit will contract from 5.9 percent of GDP in 2018 (theworst in emerging markets) to 5.3 percent of GDP in 2019 (again the worstin EM).