By Raza Ruman
PAK rupee blood bath continues under so called super genius Ishaq Dar.
If a little shame left in Dar and his boss Nawaz Sharif both should better tell the nation their failure which is costing the people of Pakistan dearly. Dar must resign forthwith.
Cash-strapped Pakistan’s currency depreciated to its lowest against the US dollar on Friday in the interbank and open market and closed at 262.6 rupees.
At one stage the currency depreciated to 265 rupees in the open market and 266 rupees in the interbank before making a slight recovery by the end of the day.
According to the State Bank of Pakistan, when the market opened on Friday the currency fell by 7.17 rupees or 2.73 per cent from Thursday’s close.
The Pakistani rupee’s value has devalued by 34 rupees since Thursday in the interbank, the largest depreciation in both absolute and percentage terms since the new exchange rate system was introduced in 1999.
The Pakistani rupee has depreciated sharply after the government removed an unofficial cap on the USD-PKR exchange rate to revive the stalled International Monetary Fund (IMF) loan programme.
The Shehbaz Sharif led government decision comes after the exchange companies announced the removal of a self-imposed rate cap in the open market.
Pakistan needs to complete the ninth review of a $7 billion IMF programme that would not only lead to a disbursement of $1.2 billion but also unlock inflows from friendly countries and other multilateral lenders.
The IMF conditions include a market-based dollar-rupee exchange parity and high-interest rate and imposition of a 17 per cent general sales tax on diesel and petrol within a week.
The first two conditions have already been met.
The Exchange Companies Association of Pakistan (Ecap), a substantial amount of remittances started flowing into the country through official channels on Friday after zero in the gap between bank and open market.
The flow of remittances to increase in the coming days and felt it would cross $2.5 billion per month again to gradually reach close to $3 billion in the coming months.
Massive inflation is to follow after rupee blood bath. And masses gonna suffer immensely. PAK DESTINY