ISLAMABAD: After having a downward trajectory for 10 continuous working days, the Pakistani Rupee on Friday got some relief and recorded a gain of 7 paisa against the US dollar in the interbank and closed at Rs 305.47 against Rs 305.54 last day as reported by the State Bank of Pakistan.
Interbank closing #ExchangeRate for todayhttps://t.co/fzRDGzwWP5#SBPExchangeRate pic.twitter.com/nDnCTwLYD4
— SBP (@StateBank_Pak) September 1, 2023
However, according to the Forex Association of Pakistan (FAP), the buying and selling rates of the greenback in the open market went beyond the threshold of 330 and were available in the range of Rs329 and Rs332. Last day, the dollar was available in the range of Rs223 to Rs227.
Meanwhile, consumers are still complaining about the availability of dollars in the open market.
Like the greenback, the price of the Euro also went down by Rs 1.18 paisa to close at Rs 331.52 against Rs 332.70 last day.
However, the Japanese Yen witnessed an increase of 1 paisa and settled at Rs 2.10, whereas the British Pound went down by 55 paisa in the exchange rate to close at Rs 387.42 against Rs 387.97 on Thursday.
The exchange rates of the Saudi Riyal and the Emirates Dirham went down by 1 and 2 to close at Rs 81.44 and Rs 83.16, respectively.
Pakistani Rupee, Between the Devil and The Deep Sea
Since the caretaker government took charge, the local currency experienced further pressure with a devaluation of over Rs 20 in a couple of weeks, in the interbank and even more in the open market.
Economy experts attributed the devaluation of the country’s currency to several issues and compulsions. On the one hand, as pledged with the IMF, the government has removed the ban on all kinds of imports, which drained out dollars from the country. Meanwhile, as per commitment with the IMF, there must be a difference of 1.25 % in the dollar-rupee parity in the interbank and open market, which ranges these days about 6 percent, far away from the prescribed level.
The political and economic unrest and no obvious clue from the international lander have made the situation worse. A statement from the caretaker finance minister, Shamshad Akhar, was already circulating in the media, who said that the situation was more challenging than expected as the government couldn’t afford any subsidies.
Authorities in the caretaker government must come up with a proper mechanism having austerity measures across the board coupled with other arrangements to tackle the country’s economy back on track.
