ISLAMABAD - Pakistani rupee fell to its all-time lowest worth against US dollar in open market on Monday mainly because of oil-related payments and $520 million tranches due to be paid to International Monetary Fund (IMF) during the current month.
The dollar reached its highest in the open market on Monday, with one dollar trading for 100.1 rupees. The 100-rupee mark is the highest exchange rate dollar has seen in the history of Pakistan. The open market began the day’s trading at Rs99.70 for buying, fall to 10 paisas and closed at Rs99.80 for buying and Rs100.1 for selling.
The rupee is under severe pressure against dollar these days as Islamabad has to repay $520 million to the IMF.
The government says that devaluation of rupee is the result of ‘speculations’. “The government will take action against banks and exchange companies who are behind speculations regarding dollar value against Pakistani rupee,” said State Minister for Finance and Economic affairs Senator Saleem H Mandviwalla while talking to TheNation.
The minister dispelled the impression that dollar value was increasing due the IMF debt payment and oil import bills. He said: “We have enough foreign reserves to repay to IMF. Therefore, IMF factor is not behind the soaring value of dollar in the country.
Economists say that investors showed concerns over the frequent depletion in the foreign exchange reserves. Pakistan’s foreign exchange reserves dropped to $13.474 billion in the last week.
The country has repaid $2.52 billion to the IMF in seven instalments since February 2012.
Sources said that Islamabad would repay $1.7 billion more to the IMF until June this year. Therefore, market sources feared that dollar value might further accelerate in weeks to come.
The economists say that country’s foreign exchange reserves are under pressure as Pakistan is repaying to the IMF, therefore rupee is the on the weaker side against the dollar.
The debt of the country increases with the soaring value of dollar and if dollar goes up by Rs1, the debt will add Rs61 billion.
Prices of petrol, electricity and imported commodities will go up with increase in value of dollar while students abroad will see education becoming more expensive.