*KARACHI – The Pakistani rupee has felt the jolt against the US dollar inthe Kerb market.*
*Pakistani Rupee dropped to its lowest level against the US dollar in theKerb market in seven weeks, it is now trading at Rs125 against US dollar onWednesday.*
It is observed that this is the outcome of the meeting held earlier thisweek between Asad Umar, finance minister and the currency exchange dealers.
Pakistani economy is facing various challenges due to external factors,resulting in deficit of foreign exchange reserves. However, the latestgovernment is geared up for a plan to delineate on the steps to determinethese issues including a discrete likelihood of International Monetary Fund(IMF).
According to statistics the foreign exchange reserves on August 31st, 2018have plunged to $9.88 billion, due to which the latest PakistanTehreek-e-Insaf (PTI) government has authoritatively extended an invitationto IMF team for discussions.
The economists suggests that if Pakistan agree to attain a bailout packagefrom the IMF, the Pakistani rupee will plunge more against the US dollarand other main foreign currencies.
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In the kerb market, the US dollar was being traded between Rs125.3-125.5.However, in the inter-bank market the rate remained constant at Rs124.4against the US dollar, as per the data revealed by the central bank.
According to Zafar Parachi, the General Secretary of Exchange CompaniesAssociation of Pakistan (ECAP) the reason behind the fall in rupee value isdue to many reasons, including the anecdote that it will depreciate toalmost 5% in the inter-bank market.
Pakistani rupee has been devalued by almost four times since December 2017,and stood at Rs128.17 till the day after general elections 2018.
Just after the general elections 2018 results, the rupee recovered againstUS dollar, it elevated in the first week before stabilizing at the rate ofRs123-124.
