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Pak rupee drops to 221 against Dollar Shehbaz Sharif Immediate Resign & Go Home

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The rupee fell to an all-time low against the dollar for the second day in a row on Tuesday, closing at Rs222 in the interbank market.

According to the Forex Association of Pakistan (FAP), the greenback was up Rs8.8, or 4 per cent, against the previous day's close of Rs215.20 to reach Rs224 around 2:30pm.

However, it closed at Rs221.99, appreciating 3.1pc, according to the State Bank of Pakistan (SBP).

Mettis Global Director Saad Bin Naseer said the rupee was seeing a decline due to "panic buying [of the dollar] by banks in the interbank market".

He said that "panic is setting in the financial markets following fears of change in [the] government in Punjab and Centre" after the by-polls on the province's 20 seats.

The by-elections saw the PTI register a thumping victory against the PML-N, which leads the ruling coalition. Following the win, the PTI has demanded early elections.

Naseer went on to say that the downgrading of Pakistan's outlook from stable to negative by the Fitch rating agency further increased panic in the market.

Moreover, he said, the demand for dollar among importers had also "spiked" as the future of inflows from the International Monetary Fund (IMF), friendly countries and bilateral sources remained a concern.

The chief executive officer of investment firm Alpha Beta Core, Khurram Schehzad, also attributed the rupee's rapid decline to Fitch's downgrading and the global trend.

"The dollar is getting stronger in the global market against almost all the world currencies. The Pakistani rupee is not an exception," he said.

"In addition, Pakistan's external account issues are not settled as yet. The IMF is yet to be on-boarded and the flows are yet to materialise. Global rating agencies have put a negative outlook on the economy so that is an additional burden that is weighing on the financial markets in general, the foreign exchange market in particular."

Schehzad called on all stakeholders to come together and devise a strategy to arrest the rupee's fall.

Role of govt, banks​

FAP Chairperson Malik Bostan was more reproachful of banks when asked about the rupee's freefall.

He alleged that banks were using the political situation in the country as an "excuse" and were involved in "satta bazi" (speculation) in the currency market.

"The central bank should take notice of this and immediately impose restrictions on forward booking of dollars to put an end to the unnecessary rise in the value of the greenback in the market, as well as banks' monopoly," he said.

This, he added, would bring the "panic" in the market to an end.

Exchange Companies Association of Pakistan General secretary Zafar Paracha, however, disagreed with Naseer and said there was "no demand" for dollars in the open and interbank market.

"It seems that it is one of the IMF's conditions that we devalue the rupee," he said, adding that he expected the government to intervene when the rupee fell to 225 against the dollar.

Fitch's report would also further affect the rupee's slide, Paracha said.

He lamented that the government and state institutions were "making no efforts" to stop the rupee's decline.

"Political parties are only concerned with forming or saving governments. Nobody is concerned with the country or the nation. All political parties should be sitting together and making a one-point agenda considering the conditions. Sri Lanka's condition is in front of us."

The government would have to take steps to bring about economic stability, including providing facilities to overseas Pakistanis to boost remittances and not facilitating elites and parliamentarians, he said.

"Otherwise, it may be too late," he warned.

Komal Mansoor, head of research at Tresmark, said: "The floor for the rupee has vanished. This is senseless."

She said that the central bank should intervene to stabilise abnormal movements, "otherwise [it] risks contagion in all other aspects of the economy".

Rupee's fall​

After reaching a peak of Rs211.93 on June 22, the dollar started declining for a brief period and fell to a low of Rs204.56 on July 4.

However, the strength gained by the rupee after $2.3 billion Chinese inflows evaporated within a couple of weeks, as the dollar snapped the rupee’s rising streak and gained Rs2.38 in the interbank market on July 5, the first appreciation in the new fiscal year.

Since then, the greenback has continued to rise with a slight reversal of the trend on July 15 — the day the IMF announced it had reached a staff-level agreement with the government. However, the rupee reversed its gains the very next day with analysts attributing it to low inflows and import payments.

On Monday, the dollar had reported a record single-day appreciation in the interbank market to reach Rs215.20 from Rs210.95.

In the first session, the greenback shot up to Rs217 but gradually came down to the level reported by the SBP. However, exchange companies reported that it closed at Rs216.20.
 

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This is sad state of Pakistan Economy
there people should REMOVE Shabaz Sharif from Office for breaking of Economy under Constitution of Pakistan
bringing disability to Masses & ruining the Exhange rate causing worsening of Economy of industrial factories.
 

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What did ordinary avg Pakistani buy last 3 months & 19 July headlines Update​

watch until end
 
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ziaulislam

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Yehi banda bara uchal uchal kar kood raha tha when this whole shenanigan was happening, and he did a long a$$ show against PTI and IK keh VoNC ana PTI ki hi ghalti hai aur acha hua.

Hun bhugto fir ganjay. Sellouts, all of them.
I mean dont blame him..if someone pays me few crore i will sell out too ..he hasnt done anything majorily wrong ..he is media guy..

Blame the people of pakistan who clearly understand corruption is bad but are okay with it(khata hey tu lagata be hey)

People think that prophet sayings arent important..there local peer, mureed, cast etx are more important
 

Jango

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I mean dont blame him..if someone pays me few crore i will sell out too ..he hasnt done anything majorily wrong ..he is media guy..

This guy doesn't have any shortage of crores.

As a media personality, it's his literal job to give out the truth and be impartial.

Malick is another fraudia. Won't call him a sellout, but he is definitely a fraudia. I clearly remember he was harping on about the IMF putting a pre-condition that dollar should be 200 PKR in June last year. And he said meetings main yeh conclude hua hai keh in Nivember dollar should be 200. Economists in his panel, who were both pro and anti-PTI and had worked in the IMF told him keh IMF aisa kabhi nhn karta. He said nhn hoga, I have source. And what do ya know...dollar didn't go to 200 in November.

Sab bikaoo maal fraudiay hain...these days it's only Kashif Abbasi I listen to who is somewhat sensible and totally neutral and objective.
 

ziaulislam

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This guy doesn't have any shortage of crores.

As a media personality, it's his literal job to give out the truth and be impartial.

Malick is another fraudia. Won't call him a sellout, but he is definitely a fraudia. I clearly remember he was harping on about the IMF putting a pre-condition that dollar should be 200 PKR in June last year. And he said meetings main yeh conclude hua hai keh in Nivember dollar should be 200. Economists in his panel, who were both pro and anti-PTI and had worked in the IMF told him keh IMF aisa kabhi nhn karta. He said nhn hoga, I have source. And what do ya know...dollar didn't go to 200 in November.

Sab bikaoo maal fraudiay hain...these days it's only Kashif Abbasi I listen to who is somewhat sensible and totally neutral and objective.
You are never satisfied when it comes to money

I think once we have more chatrool people will findly understand how lucky they were in 2018 and how stupid is mr aristotle concept that corruption is okay

250 is done deal for rupee

Will it go to 300?

I think if russian war lasts then yes
 

ziaulislam

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Oil today is cheaper then it was when IK left yet ..

This guy doesn't have any shortage of crores.

As a media personality, it's his literal job to give out the truth and be impartial.

Malick is another fraudia. Won't call him a sellout, but he is definitely a fraudia. I clearly remember he was harping on about the IMF putting a pre-condition that dollar should be 200 PKR in June last year. And he said meetings main yeh conclude hua hai keh in Nivember dollar should be 200. Economists in his panel, who were both pro and anti-PTI and had worked in the IMF told him keh IMF aisa kabhi nhn karta. He said nhn hoga, I have source. And what do ya know...dollar didn't go to 200 in November.

Sab bikaoo maal fraudiay hain...these days it's only Kashif Abbasi I listen to who is somewhat sensible and totally neutral and objective.
I hope all patwaris are now happy with rupee losing almost 50% in 3 months

Is this something new?
Nope

Rupee lost 90% in 1998

The only reason it didnt in 2013 was well you had 4-5b$ flowing in from uncle samw..more then what mushi was getting

Exports were dropping crazy back then too

PS۔
i am happy

The more the rupee drops the higher is my pay
 

maithil

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USD crosses Rs229 in interbank market

Prime Minister Shehbaz Sharif sought an urgent board meeting of the International Monetary Fund (IMF) on Wednesday to approve Pakistan’s request for a bailout package, as the rupee was beaten for the third day in a row due to high political volatility and a pause in major foreign loans inflows.

Chairing a meeting on the rapidly deteriorating external sector situation, Shehbaz directed Finance Minister Miftah Ismail to request the IMF for approval of Pakistan’s loan before going on recess from next month, at least three meeting participants told The Express Tribune.

The prime minister chaired the meeting shortly after Ismail and a senior official of the SBP held separate meetings with journalists in Islamabad to explain the reasons behind a rapid fall in the value of the rupee and jittery markets.
The country is now ready to sell its two LNG-fired power plants to the United Arab Emirates (UAE) at a negotiated price within a few days by cutting down the competitive privatisation process that takes about one and a half years.

The government is also willing to give a seat to the UAE government on its blue-chip companies for another $1 billion to stop the current economic meltdown – that, too, through a government-to-government deal and promulgating a presidential ordinance.
 

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