On Wednesday, the Pakistani rupee was trading at 287.20 in the interbank market whereas foreign currency dealers verified the value of PKR to be Rs 308-310 in the open market against dollar.
However, when the difference between PKR and dollar expanded due to a shortage of foreign currency.
The rupee lost ground against the US dollar for the fifth straight session on Tuesday, falling to settle at 287.15, or 0.21% down, in the interbank market.
In a significant milestone, Prime Minister Shehbaz Sharif requested that the economic team take specific action to increase revenue by enlarging the tax base.
The budget for the upcoming fiscal year, 2023–2024, will be presented on June 9, 2023, following approval from the federal cabinet, according to the meeting, which was presided over by the prime minister on Tuesday.
On Wednesday, safe-harbor demand kept the US dollar close to a two-month high as talks to raise the US debt ceiling continued on with no immediate resolution in sight.
Earlier, the International Monetary Fund (IMF) stated that Pakistan needed to control inflation by further increasing the policy rate, which is already standing at 21%. However, the global loan lender released its outlook for the Middle East and Central Asia, which described the economic situation of a part of the region.
Meanwhile, the IMF defines the natural policy rate as the real natural rate plus one-year-ahead inflation expectations from the World Economic Outlook databases.
For this fiscal year, the World Economic Outlook has projected an average inflation rate of 27.1%. The forecast is 21.9% for the next fiscal year.
Additionally, the State Bank of Pakistan (SBP) has already increased the interest rate by 400 Bps to 21% from 17% in Imran Khan-led previous government.
Follow More: IMF Suggests Tighter Policy Rate to Combat Inflation
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