Pakistan will not devalue rupee: PM

Pakistan will not devalue rupee: PM
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Prime Minister Shahid Khaqan Abbasi said in an interview with Bloomberg late Saturday that he will not opt to devalue the rupee to spur inflows.

The statement comes amidst stoking speculation that the prime minister will opt to devalue the rupee as twin deficits are depleting the nation’s foreign-exchange reserves and constraining credit ratings.

The prime minister said that with elections scheduled to be held next year, the government is instead looking to curb imports through tariffs and help boost local production.

Abbasi said in the interview at the former house of Pakistan’s founder Muhammad Ali Jinnah in Karachi that “devaluation is our option, theoretically, even though it should incentivise exports but in reality, it doesn’t.”

“So at this moment as I said devaluation is not on the table,” he added.

Pakistan’s current account gap more than doubled to $12.1 billion in the year ended June, while its trade deficit surged to a record $33 billion as imports increased.

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