Rupee Hits 100 Mark against USD
For the second time this year, the Pakistani Rupee has touched the 100-mark against the U.S. dollar in the open market amidst concerns over a negative balance of payment and an uncertain political forefront. The International Monetary Fund (IMF) has urged Pakistan to take effective measures to stabilize the country’s economy and form the basis for future growth.
Since December 2011, the value of the Pakistani Rupee has decreased by nearly PKR 8.10 against the U.S. dollar following the fall in foreign reserves, pressure on payment for opening license of credit, and high demand of the dollar from local currency markets. Other factors leading to this decline include import bills of crude oil, palm oil, industrial raw material, and other commodities.
The economic outlook of the coun- try appears shabby as the local currency has been devalued by nearly 8.6 percent to date since the beginning of the current financial year. The rise in imports bill and payment of International Monetary Fund’s (IMF) Standby Arrangement (SBA) facility installments have led to this unprecedented increase.
In addition, reducing the Rupee value against the dollar include economic factors such as the deficiency of foreign inflows and an increase in the government’s non- productive expenditures. Inflationary conditions also show an upward trend which is an additional burden on the country’s fragile economy.