KARACHI: The Pakistani rupee hit an all-time on Monday against the United States dollar to close at Rs170.79, amid rising imports and the flow of the greenback to Afghanistan.
The rupee lost 31 paisas or 0.19 percent of its value in the interbank market. But the Pakistani currency appreciated by Rs0.30 in the open market, where the dollar was trading at Rs172.30 for selling and Rs172 for buying.
Currency dealers attribute the slight fall of the greenback in the open market to a government’s crackdown against illegal currency exchangers.
“Government has taken action against illegal currency operators which has appreciated the value of Pakistani rupee in open market,” Zafar Paracha, Exchange Companies Association of Pakistan general secretary, told Arab News.
“However, in the presence of prevailing sentiment that the dollar is appreciating will only be cooled when the currency in the interbank market will appreciate against dollar because the open market takes cue from the interbank [market] and only action against illegal operators will not produce desire results.”
Analysts say the Pakistani currency is under pressure due to an increasing import bill and the flow of dollars to Afghanistan.
“Pakistani currency is under pressure due to increasing imports and shortage of dollars in Afghanistan is also adding pressure to the Pak rupee,” Samiullah Tariq, a research director at the Pakistan-Kuwait Investment Company, told Arab News.
Pakistan on Monday also released foreign trade data, which showed the country’s imports during the first quarter (July-September) increased by 65 percent on a quarterly basis as compared to the first quarter of the last fiscal year.
The trade deficit stood at $11.66 billion during the first quarter, which is 101 percent higher than $5.8billion in the same period last year.
Pakistan’s exports during the first quarter increased by 27.32 percent to $6.96 billion, according to data released by the Pakistan Bureau of Statistics (PBS).
“This (exports) has been due to hard work of our exporters & they deserve praise for this accomplishment,” Abdul Razak Dawood, Prime Minister Imran Khan’s aide on commerce, said in a statement issued by the Pakistani commerce ministry.
Analysts say the import bill is increasing mainly due to the increasing prices of commodities in the international market.
“The prices of petroleum products, palm oil and other essential commodities have surged in the international market which is reflected in import bill,” Tariq said.
The business community is concerned over increasing prices of imported commodities and the rising trend in imports.
“The rupee has substantially depreciated which has made imports costlier, but this has not arrested the flow of imports yet,” Mian Zahid Hussain, the National Business Group of Pakistan chairman, said.
But Tariq believed the demand of elastic imports would subdue in the coming days, when people start avoiding expensive imported goods.
Pakistani rupee continues plunge to hit new all-time low against the greenback
https://arab.news/zkbnn
Pakistani rupee continues plunge to hit new all-time low against the greenback
- Analysts say Pakistani currency under pressure due to increasing import bill, flow of dollars to Afghanistan
- But rupee appreciated by Rs0.30 in open market with dollar trading at Rs172.30 for selling, Rs172 for buying
IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’
- Fund backs sale of national airline as key step in divesting loss-making state firms
- IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities
KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).
The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.
Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.
“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.
“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.
The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.
Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.
Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.
