ISLAMABAD: The Pakistani rupee dropped to a nearly one-year low against the US dollar as the greenback hit Rs167 on Thursday, Pakistani media reported, as an air of uncertainty surrounded the exchange markets.
The greenback touched its lowest against the rupee on May 9 when it was traded at Rs151.17. Since then, it has been appreciating and hit Rs167 on Thursday, just close to the highest price of Rs168.2 in August 2020, the Daily Dawn newspaper reported.
The value of the dollar has increased by 10.5 percent against the rupee in the last four months.
Bankers and currency dealers have been trying to understand why the rupee has been falling, despite growing foreign exchange reserves.
“It may be the widening trade deficit or fear of higher current account deficit in FY22 and increased requirement of US dollars for debt servicing, but right now the exchange rate is not stable,” a currency dealer in the interbank market told Dawn.
Nobody can ascertain the limit of the devaluation of the rupee, which is alarming as the inflow of high cost of imported goods is creating inflation, he added.
There has been no intervention from the State Bank of Pakistan (SBP) to stop the devaluation and bring stability to the rupee’s value.
While presenting the monetary policy last month, SBP Governor Dr. Reza Baqir had said the current account deficit was going to be higher than FY21 and would be between 2-3 percent, while the exchange rate would respond to this deficit in the form of the dollar’s appreciation.
“We are not able to judge where the limit of this devaluation of local currency is, but there are concerns among the stakeholders about this strange exchange rate stability,” the Dawn report quoted a senior banker as saying.
Currency dealers in the open market were also unable to predict an end to the depreciation in the rupee’s worth.
On Thursday, the demand in the open market was still very low but the dollar got a higher price at Rs167.80, according to the report.
Pakistan’s trade deficit also widened by 133 percent to $4.05 billion in August, reflecting mounting pressure on the exchange rate due to higher demand for dollars for imports.
Pakistani rupee slides to one-year low against dollar
https://arab.news/54trc
Pakistani rupee slides to one-year low against dollar
- The greenback hit Rs167 on Thursday as uncertainty surrounded exchange markets
- The value of the dollar has risen by 10.5 percent against the rupee since May
Nine Pakistani firms showcase auto components at Automechanika Dubai 2025
- Pakistan to present automotive parts, engineering goods, hybrid-tech capabilities to global buyers
- Expo expected to draw 50,000 visitors and 2,400 exhibitors from over 60 countries, Consulate says
ISLAMABAD: Nine Pakistani companies are exhibiting automotive parts and engineering products at Automechanika Dubai 2025, one of the world’s largest auto-sector trade events, the Pakistani Consulate in Dubai said on Tuesday.
The three-day expo, being held from Dec. 9–11 at the Dubai World Trade Center, is expected to draw more than 50,000 buyers and 2,400 exhibitors from 60 countries, showcasing parts, components, lubricants, batteries, radiators, electronics, diagnostics tools, lighting, accessories, paint and body systems, as well as electric and hybrid vehicle technology.
Pakistan’s automotive and engineering sector contributes to manufacturing, employment and exports, with companies increasingly targeting Middle East and African markets for sourcing and aftermarket supply.
“Nine Pakistani companies facilitated by the Trade Development Authority of Pakistan (TDAP) are exhibiting their products to highlight Pakistan’s strengths in automotive parts, engineering goods and related industries,” the Consulate said.
Pakistan’s Consul General in Dubai Hussain Muhammad inaugurated the country pavilion and said participation at Automechanika reflects Islamabad’s intent to position its manufacturers in global supply chains and expand access to high-value export markets. Trade and Investment Counselor Ali Zeb Khan also reaffirmed support for exporters seeking new business linkages.
In November, Pakistan also exhibited at Big 5 Global 2025, showcasing construction materials and technologies at what is considered the world’s largest construction industry gathering.
