PKR glides to 207/USD in early trade

June 16, 2022 (MLN): Owing to the concerns over melting foreign exchange reserves with no clarification on the IMF front, the Pakistani rupee (PKR) has sunk to 207 per US dollar in the interbank market during early trade [10: 00 PST], depreciating by 54 paisa compared to the previous close of 206.46 per USD.

Witnessing a volatile session, the local unit is being traded at 206.09/206.59 per USD [10: 10 PST].

“With PKR & foreign exchange reserves melting down at a very fast pace, the urgency is to get the house in order per IMF is obvious,” Asad Rizvi, the former Treasury Head at Chase Manhattan Bank said.

This is why the SBP act is amended, he added.

Adding that he further stated that the government has increased the price of petrol, electricity, and gas along with an increase in policy rates. This is not enough, the government will have to take more tightening measures in terms of abolishing subsidies, reducing the deficit, and imposition of additional taxes.  

He also indicated the need to resolve minor issues such as a 9% tax to GDP ratio, 79% GOP holdings, and 53% advance deposit ratio so that economy could join back the track of stability.  

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