KARACHI: Pakistan's rupee hit a record low on Monday of 173.20 in intra-day trading against the U.S. dollar before closing at 172.78, below the previous close of 171.18, after reports of a failure of talks with the International Monetary Fund, traders said.
The government's finance ministry on Monday dismissed reports by local media over the weekend that talks from October 4 to 15 for the release of a $1 billion loan tranche were inconclusive.
"Negotiations between Pakistan and IMF are moving forward positively. No timeframe was set at any stage for the conclusion of the talks," a statement issued by finance ministry said.
In June, a similar round of talks between the two sides failed to bring agreement on conditions for the tranche.
"The uncertainty regarding the IMF program after news reports emerged that Pakistan and IMF have failed to agree on certain conditions has resulted in today’s depreciation of rupee," Atif Zafar, chief economist and director at Topline Securities told Reuters.
Last month, Fitch Ratings revised down its forecasts for the Pakistani rupee for both this year and next due to a variety of factors including an increased flow of U.S. dollars into neighbouring Afghanistan.
Fitch’s forecast for the rupee’s average rate this year is now 164 to the U.S. dollar compared with 158 previously. For 2022, Fitch expects an average rate of 180 versus a previous forecast of 165.
The State Bank of Pakistan earlier indicated that the dollar could appreciate during the current financial year due to an expected higher current account deficit.
Pakistan's rupee drops to record low on reports IMF tranche talks failed
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Pakistan's rupee drops to record low on reports IMF tranche talks failed
- Pakistan dismisses reports talks from October 4 to 15 for release of $1 billion loan tranche were inconclusive
- In June, a similar round of talks between the two sides failed to bring agreement on conditions for the tranche
Suicide bomber kills at least five at wedding in northwest Pakistan
- Attack took place in Dera Ismail Khan, targeting the home of a local peace committee member
- Peace committees are community-based groups that report militant activity to security forces
PESHAWAR: A suicide bomber killed at least five people and wounded 10 others after detonating explosives at a wedding ceremony in northwestern Pakistan on Friday, officials said, in an attack that underscored persistent militant violence in the country’s restive Khyber Pakhtunkhwa province.
The blast took place at the home of a local peace committee member in Dera Ismail Khan district, where guests had gathered for a wedding, police and emergency officials said.
Peace committees in the region are informal, community-based groups that work with security forces to report militant activity and maintain order, making their members frequent targets of attacks.
“A blast occurred near Qureshi Moor in Dera Ismail Khan. Authorities have recovered five bodies and shifted 10 injured to hospital,” said Bilal Faizi, a spokesman for the provincial Rescue 1122 emergency service, adding that the rescue operation was ongoing.
Police said the attacker blew himself up inside the house during the ceremony and that the bomber’s head had been recovered, confirming it was a suicide attack.
Several members of the local peace committee were present at the time, raising fears the toll could rise.
District Police Officer Sajjad Ahmed Sahibzada said authorities had launched an investigation into the incident, while security forces sealed off the area.
Militant attacks have surged in parts of Khyber Pakhtunkhwa after the Taliban returned to power in neighboring
Afghanistan in 2021, with the administration in Islamabad blaming the Afghan government for “facilitating” cross-border attacks targeting Pakistani civilians and security forces. However, Kabul has repeatedly denied the allegation.
Khyber Pakhtunkhwa has also seen frequent intelligence-based operations by security forces targeting suspected militants.
No group has immediately claimed responsibility for Friday’s attack.
