Pakistani rupee devalues close to much anticipated Rs200

[ni8mare]

Pakistani rupee devalues close to much anticipated Rs200​

Currency was trading at Rs199.61 at around 3pm, dropped by Rs3.87 in a single day

---

Salman SiddiquiMay 18, 2022

Rupee has declined against the greenback because of concerns on both political and economic fronts. photo: file

---

KARACHI:
The Pakistani rupee devalued close to the much anticipated Rs200 against the US dollar in inter-bank market. At around 3pm, it was trading at Rs199.61, dropped by Rs3.87 in a single day.
The latest depreciation comes amid the resumption of talks between the government and the International Monetary Fund (IMF) for the revival of the stalled multi-billion dollar loan programme.
The domestic currency has maintained the downturn on the ninth consecutive working day as it cumulatively lost 7.5 % or Rs13.92.
Importers have maintained panic buying of dollars on assumptions the IMF may not resume the loan programme after the government remained reluctant to fulfill its prerequisite conditions.
Finance minister Miftah Ismail said on Sunday that they would try to convince the IMF to soften their conditions.
The IMF had asked the government to withdraw subsidies on petroleum products and electricity.
Read more Fuel prices to remain unchanged ‘for now’
Experts believe that the country badly needs for the IMF programme to be resumed to avoid the perpetually increasing risk of default on international payments including import payments and foreign debt repayment.
The country’s foreign exchange reserves have depleted to the critically low level of $10.3 billion which covers just six weeks of imports compared to the usual three-month import cover.
Importers made panic buying of the US dollar against limited supplies, as exporters delayed the receipt of payments from foreign buyers anticipating the rupee may touch the Rs200 level soon.
Taking cue, apparently from a sharp rise in Pakistan’s default risk in global bond markets, foreign investors have returned to the selling counters in the domestic market, as they pulled out $12 million (Rs2.34 billion) by offloading Pakistan Investment Bonds (PIBs) earlier today.
Meanwhile, the federal government was also reported to have imposed a complete ban on the import of unnecessary and luxury items to deal with the country's unsettling economic woes on Wednesday, Express News reported.

 

[Invictus01]

Matric pass military establishment successfully fucked Pakistan over yet again

Removing a stable government that had the guts to make tough economic decisions to install a puppet government that is constantly refusing to increase fuel prices... slowly and gradually driving Pakistan to the edge of complete economic anhilation

We would lose this country to our enemies without even firing a single shot

 

[Indus Pakistan]

Matric pass military establishment successfully fucked Pakistan over yet again

Lol. The media was going frenzy about the inflation and drop in value of rupee? Where are they now that we have competent Showbaz in charge?

 

[Wood]

This will be a psychological set back for PDM administration. They would want to avoid it at all cost. But options are limited without expedient support from IMF. Bilawal's trip to the US seems to be the big hope

 

[Indus Pakistan]

This will be a psychological set back for PDM administration. They would want to avoid it at all cost. But options are limited without expedient support from IMF. Bilawal's trip to the US seems to be the big hope

No idea about Indian military but above rank of colonel most promotions are all about brown nosing and being yes men. Basically promotion above that rank encourages those who take no risk, follow the book, keep the guys above them pleased. This sort of culture weeds out thinkers, guys who take risks or think diferantly from the herd.

Basically this means the lowest common denominator get promoted. This is reflected in the chronic dearth of cerebral power in Pakistan Amy's senior staff officers. Bajwa is great example of this. But worse is when small men end up in such positions of pwer their heads begin to rise in the clouds and they begin taking licence with the country.

Look at the mess Pakistan is in right now and its not even over yet. In India IK would have got his 5 years and if public were not happy they would turf him out. Instead Bajwa decided to be the king maker.

And look he made kings. Bilawal is a immature she-male who has zero experiance, has never done days work in his life and the only achievement was he managed to chute out of his mums tube.

And the tube was called Bhutto.

 

[Norwegian]

This will be a psychological set back for PDM administration. They would want to avoid it at all cost. But options are limited without expedient support from IMF. Bilawal's trip to the US seems to be the big hope

PDM official spokesperson on PDF, an Indian Patwari

No idea about Indian military but above rank of colonel most promotions are all about brown nosing and being yes men. Basically promotion above that rank encourages those who take no risk, follow the book, keep the guys above them pleased. This sort of culture weeds out thinkers, guys who take risks or think diferantly from the herd.

Basically this means the lowest common denominator get promoted. This is reflected in the chronic dearth of cerebral power in Pakistan Amy's senior staff officers. Bajwa is great example of this. But worse is when small men end up in such positions of pwer their heads begin to rise in the clouds and they begin taking licence with the country.

Look at the mess Pakistan is in right now and its not even over yet. In India IK would have got his 5 years and if public were not happy they would turf him out. Instead Bajwa decided to be the king maker.

And look he made kings. Bilawal is a immature she-male who has zero experiance, has never done days work in his life and the only achievement was he managed to chute out of his mums tube.

And the tube was called Bhutto.

 

[Ssan]

PDM govt needs to go asap- let technocratic govt come and increase prices as required. After subsidies are removed, we are actually okay.

 

[Shakuni Mama]

This will be a psychological set back for PDM administration. They would want to avoid it at all cost. But options are limited without expedient support from IMF. Bilawal's trip to the US seems to be the big hope

No, they can hope so but it is always inevitable in near future. It will free fall to 215 and then will stagnant as it happened in 2018. Pakistan does not have export capacity and that is the reason why it is bound to fail.

 

[Waterboy]

No one wants to take tough decisions. This entire fiasco started when PTI initiated the petrol subsidy and subsequently IMF backed out.

There was no money to fund the subsidy, everyone from PTI who says so is politically motivated and furthering their own agenda.

Moreover the economy has been under stress since PTI came into power from day 1. There is no denial they mismanged the economy in the early day by massively depreciating the pkr. Austerity measure were a gimmick.

Plus we can't grow at 5% or 6%, we overheated the economy. Yearly growth of 2 or 3 percent wouldve made sense. PTI followed the same boom and bust cycle. They took loans and implemented the same things over and over again. Remittances increased and exports increased marginally but again no future vision or concrete economic decision.

PMLN being the utter failure they are refusing to kill their politics and steering thr country towards economic collapse.

Even if dollar depreciates to 300 or 400 we still be begging for loans because no single party has an economic vision. Heck even if PTI wins 2/3 or bring the presidential system or bullshit, the economy will remain in shambles because people running the show will be shaukat tarin, shehbaz gill and sheikh rasheed. The same old lot.

Populistic politics will be the end of this country.

 

[Wood]

Look at the mess Pakistan is in right now and its not even over yet. In India IK would have got his 5 years and if public were not happy they would turf him out. Instead Bajwa decided to be the king maker.

And look he made kings. Bilawal is a immature she-male who has zero experiance, has never done days work in his life and the only achievement was he managed to chute out of his mums tube.

And the tube was called Bhutto.

If you make the assumption that US is predisposed to help PDM administration prevail over PTI, then it is a big advantage for Bilawal. US can influence IMF to make a compromise on subsidy, giving a big win for PDM and Bilawal. Let's see if fortune favors this scion of Bhutto clan.

No, they can hope so but it is always inevitable in near future. It will free fall to 215 and then will stagnant as it happened in 2018. Pakistan does not have export capacity and that is the reason why it is bound to fail.

I'm not sure about the 215 number you quote, but from a long term perspective I agree with your opinion that Pakistan needs to lower its CAD by improving trade deficit. Or maybe get large FDI and FII every year. In the short term though, reserves can be padded by inflows from multilateral or bilateral lending / loan restructuring. IMF is key player.

 

[Olympus81]

It is quite surprising the paralysis amongst PDM ranks.

They know the country is nearing default but they won’t remove subsidies nor do they have any plan to mitigate it.

In all likelihood the establishment and PDM are having fits and cannot agree on the next steps. And Imran Khan pressure is weighing down on this crooks.

 

[ghazi52]

.,.,

Currency Rate​

as per Open Market as on Thu, May 19 2022, 19:48 PST (GMT+5)

Remittance​	Symbol​	Buying​	Selling​
US Dollar DD​	USD-DD​	199.9​	201.65​
US Dollar TT​	USD-TT​	199.9​	201.65​

Currency​	Symbol​	Buying​	Selling​
Australian Dollar​	AUD​	135​	138​
Bahrain Dinar​	BHD​	386.5​	388.5​
Canadian Dollar​	CAD​	150​	152.5​
China Yuan​	CNY​	23.55​	23.95​
Danish Krone​	DKK​	23.65​	23.95​
Euro​	EUR​	199​	201​
Hong Kong Dollar​	HKD​	16.6​	16.85​
Indian Rupee​	INR​	2.03​	2.1​
Japanese Yen​	JPY​	1.41​	1.44​
Kuwaiti Dinar​	KWD​	481.85​	484.35​
Malaysian Ringgit​	MYR​	36.75​	37.1​
Norwegians Krone​	NOK​	17.5​	17.75​
Omani Riyal​	OMR​	392.95​	394.98​
Qatari Riyal​	QAR​	39.9​	40.5​
Saudi Riyal​	SAR​	51.5​	52.5​
Swiss Franc​	CHF​	160.35​	161.25​
U.A.E Dirham​	AED​	54​	55​
UK Pound Sterling​	GBP​	240​	243​
US Dollar​	USD​	200​	201.5​

 

[koolio]

Great achievement by PDM in a short span of time, unfortunately the US Dollar will continue to climb against the Pakistani rupee.

Economic meltdown is already happening, again the PDM has no effective plan, investors don't trust PDM, free and fair elections need to be held soon as possible.

 

[ghazi52]

,..,

 

[AZADPAKISTAN2009]

Economy and Everything can be fixed but need a honest man like Imran Khan Back with his honest group of people

Inshallah Allah barkat dega