Pakistani rupee drops to record low amid hopes for IMF funds

A Pakistani man counts Pakistan's rupees at his shop in Karachi on May 16, 2019. (Photo courtesy: AFP)
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Updated 27 January 2023
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Pakistani rupee drops to record low amid hopes for IMF funds

  • The Pakistani rupee fell 9.6 percent against the dollar on Thursday in the inter-bank market
  • IMF plans to send a delegation to Pakistan from Jan 31 to Feb 9 to discuss a stalled loan package

KARACHI: The Pakistani rupee fell 2.7 percent against the US dollar on Friday to a record low after a steep slide on Thursday, with hopes raised by an International Monetary Fund (IMF) team visiting Islamabad next week to discuss unlocking a suspended bail-out package.

The rupee closed at 262.6 per dollar in the interbank market against a close of 255 on Thursday.

 

 

Earlier in the day, the Pakistani rupee showed signs of steadying after steep decline over the previous two days.

On Thursday, the Pakistani rupee fell 9.6 percent against the dollar in the inter-bank market, the biggest one-day drop in over two decades, a day after foreign exchange companies removed a cap on the exchange rate.

Hours after the rupee was left to the market forces to decide its worth, the IMF announced that its delegation will be visiting Pakistan from Jan 31 to Feb 9 to discuss its 9th review of a bailout package agreed for $6 billion in 2019, and topped up to $7 billion last year.

“As we have seen the announcement, and the IMF program is resumed, we should be, God willing, good,” former finance minister Miftah Ismail told Geo TV, adding that it will head off the risk of Pakistan defaulting on its external obligations.

Disbursements from the package were suspended in November, due the lack of progress on fiscal consolidation, hastening Pakistan’s slide deeper into a balance of payments crisis, with foreign exchange reserves currently only able to cover three weeks imports.


Authorities begin action against vehicles without e-tags in Pakistani capital

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Authorities begin action against vehicles without e-tags in Pakistani capital

  • Capital administration made e-tags mandatory for all vehicles in Islamabad in Nov.
  • Vehicles already equipped with a motorway tag, or m-tag, do not require an e-tag

ISLAMABAD: Authorities have begun action against vehicles plying roads in the Pakistani capital of Islamabad without electronic tags, or e-tags, the Islamabad administration said on Sunday, in a move aimed at streamlining traffic management and improving monitoring at the city’s entry and exit points.

The capital administration made e-tags mandatory for all vehicles in Islamabad in Nov. last year to enhance security in the city. Vehicles already equipped with a motorway tag, or m-tag, do not require an e-tag.

The move is aimed at regulating traffic flow, improving record-keeping, and ensuring that vehicles entering the federal capital are properly registered within the system, according to the officials.

The enforcement relies on e-tag readers installed at entry and check points across the capital, which automatically identify untagged vehicles and allow authorities to take action without manual checks.

“Vehicles without m-tags are being stopped at various checkpoints,” the Islamabad administration said in a statement, citing a top excise official. “Citizens are requested to get the tags installed as soon as possible to avoid legal trouble.”

Readers are fully operational at various check points across the city to identify vehicles without e-tags, according to the statement. Installation of e-tags is also underway at 17 points set up in different areas.

“A total of 166,888 vehicles have so far been successfully issued m-tags,” the statement read.

Last month, Interior Minister Mohsin Naqvi also reviewed Islamabad’s monitoring system and said reforms in Safe City project operations and the effective use of technology were the “need of the hour,” according to his ministry.

“Under the Capital Smart City initiative, citizen services such as Rescue 1122, traffic management, security, and the Capital Development Authority (CDA) would be integrated into a centralized system,” Naqvi said.