Karachi July 26 2022: Pakistan rupee continue to drop against the dollar and drop by 3.12 rupee to trade at 233 in the interbank as PDM partners boycott three member Supreme Court Bench in Punjab CM hearing.
The Supreme Court on Monday rejected the pleas to form a full court bench on petitions related to the Punjab chief minister’s re-election.
Since by elections of largest province, rupee falls 22.05 rupees or 10.4 percent. Fitch revision in Pakistan outlook to negative from stable amid increase in political tension despite Pakistan reaches staff level agreement with IMF for release of $1.17 billion under 7th and 8th review of Extended Fund Facility further worsen the situation.
According to Bloomberg, Pakistan’s central bank is discouraging interbank trading due to a severe shortage of dollars that has pushed the rupee to post its worst weekly drop since 1998, according to people with knowledge of the matter.
State Bank of Pakistan asked commercial lenders to manage import-payment requests from their own inflows, such as exporter accruals and remittances, the people said, asking not to be identified discussing private deliberations. If the bank still needs to borrow, it must seek permission from the monetary authority, the people added.
Some banks are seeking permission from the SBP and providing dollars at a premium, which is raising costs for their clients, according to other people with knowledge of the matter.
