Karachi October 3 2022: Pakistan Rupee continue to appreciate for the seventh consecutive session in interbank against dollar as Inflation came in lower than expectation amid hope of concession from IMF as government kept petroleum levy unchanged on combined Petrol and Diesel.
Inflation recorded at 23.2% on year-on-year basis in Sep 2022 as compared to an increase of 27.3% in the previous month and 9.0% in Sep 2021. On month-on-month basis, it decreased by -1.2% in Sep 2022 as compared to an increase of 2.4% in the previous month and an increase of 2.1% in Sep 2021.
IMF Mission Chief, Mr. Nathan Porter shared Funds’s assessment of the challenges facing the economy. He also expressed IMF’s support for Pakistan in this hour of need and in this context mentioned the meeting of the MD IMF with the Prime Minister of Pakistan. The IMF Mission Chief also discussed the support of international lenders for the country to mitigate the effects of flashfloods.
The United Nations will be launching a fresh appeal tomorrow on October 4 for an additional USD 600 million in support to Pakistan for providing immediate relief to millions of flood victims across country.
The government took a hit on revenue by reducing the petroleum development levy on petrol by Rs5 per litre to Rs32.42. However, the same was increased by Rs5 per litre on HSD to Rs12.58.
Newly sworn-in Finance Minister Ishaq Dar on Wednesday said strengthening regaining the deserving value to country’s currency, bringing down inflation and reducing interest rate were among the priorities.
Pakistan Rupee appreciate PKR 1.05 or 0.46 percent in interbank to trade at 227.4 at PST 12:10 against yesterday closing of 228.45. In the last seven consecutive session rupee gains PKR 12.31 or 5.14% from recent low of 239.71.
However, In Open Market Rupee lose PKR 1.5 to trade at 231.5 at PST 12:00 against yesterday closing of 230.0.
Ishaq Dar was optimistic that the country would be put back on growth path as the Pakistan Muslim League (N) had the history of correcting economy during crisis in the past.
“As a nation we had challenges, we have faced them with success in the past,” he said while citing the examples of economic restriction following nuclear tests of 1998 and declared macroeconomic instability of 2013.
The dollar has been pulled higher by the Federal Reserve’s most aggressive policy tightening since the early 1980s, which has pushed up US bond yields. The Bloomberg dollar index has risen 14% this year, with the currency gaining even more against the pound and yen. The pound collapsed to a record low in late September due to the concerns over the UK’s deep tax-cut plans.
Japan spent $19.7 billion on its first intervention since 1998 to bolster the currency, but the surprise move didn’t bring long-lasting results. Unlike the Fed, the Bank of Japan has been keeping interest rates low.
