Karachi October 26 2022: Pakistan Rupee fall against dollar in interbank after gaining for consecutive days on increasing political temperature in the country after announcement of long march by PTI chairman and more than 30 percent increase in country’s Credit Default Swap rate.
Pakistan Rupee depreciate 95 paisa or 0.43 percent in interbank to close at 220.68 against yesterday closing of 219.73, according to State Bank of Pakistan.
Moreover, In Open Market Rupee fall 70 paisa and is trading at 223.7 against dollar at PST 18:30 against yesterday closing of 223.0, according to Forex Association of Pakistan.
The euro climbed back above parity against the dollar for the first time in a month on Wednesday after poor U.S. economic data reinforced speculation that the Federal Reserve will slow its interest rate hikes, sending the greenback tumbling. The U.S. dollar index, which tracks the currency against a basket of six major peers including the yen, British pound and euro, fall 0.65% to 110.22.
Yesterday, Former Prime Minister Imran Khan has said that the long march of Tehreek-e-Insaaf will begin on Friday. During the press conference in Lahore, he said that this long march will start from Liberty Chowk in Lahore.
Pakistan Credit Default Swap (CDS) jump 3,071 basis points on Monday to the historic high level of 5,282 basis points, according to data published by Bloomberg.
Asian Development Bank has released funds of $1.5 billion to Pakistan under BRACE program for the credit of Govt of Pakistan’s account with State Bank of Pakistan says Finance Minister Ishaq Dar.
The loan, provided under ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE) Program, will help fund the government’s $2.3 billion countercyclical development expenditure program designed to cushion the impacts of external shocks, including the Russian invasion of Ukraine.
Pakistan will ask international lenders for billions of dollars in loans after devastating floods exacerbated the South Asian nation’s economic crisis, the Financial Times reported.
“We are not asking for any kind of measure [such as] a rescheduling or a moratorium,” the country’s Prime Minister Shehbaz Sharif told the Financial Times. “We are asking for additional funds.”
In September, the current account deficit (CAD) declined for the 3rd month in a row. It fell to $0.3bn, less than half the level in August. In Q1FY23, the CAD has fallen to $2.2bn from $3.5bn in Q1FY22, mainly reflecting a decline in imports, according to data released by State Bank of Pakistan.
Pakistan’s new finance minister, Ishaq Dar, told Reuters on Friday that he will seek rescheduling of some $27 billion worth of non-Paris Club debt largely owed to China, but will not pursue haircuts as part of any restructuring. The veteran finance minister said multilateral development banks and international donors have been “quite flexible” with ways to meet Pakistan’s external financing needs estimated at about $32 billion after devastating floods.
