ISLAMABAD: Pakistan’s Finance Minister Miftah Ismail said on Saturday the government had brought the value of the US dollar under control, as the Pakistani currency recorded some gains over the past couple of days against the greenback after weeks of losses.
The Pakistani rupee recorded its highest-ever increase against the US dollar in a day on Wednesday, appreciating by Rs 9.58 against the greenback as pressure from import payments decreased and exporters rushed to sell their dollars in the market.
On Friday, the rupee continued to appreciate in value, recording an increase of 0.94 percent against the dollar in the interbank market at 224.04, gaining Rs16.26 since July 29.
“We have brought it under control,” Ismail told reporters during a press briefing at the Karachi Chamber of Commerce, adding that earlier the dollar “was appreciating at an alarming rate.”
The pressure on the rupee has been due to the country’s wide trade deficit, the minister said, adding that Pakistan’s imports in last fiscal year stood at $80 billion while its exports were merely $31 billion. The country’s current account deficit was $17.5 billion while the trade deficit, after subtracting the remittances, stood at $18 billion, he said.
During an event at the Pakistan Stock Exchange in Karachi on Friday, Ismail vowed that Pakistan will not increase its imports, at least for three months.
“I understand that growth will be reduced, but I have no other choice,” he said.