Rupee decline persists as economic woes take toll on investors’ sentiment

Pakistani rupee continued to register losses for the third successive session as shrinking foreign exchange reserves amid rising imports and a delay in the funding from the International Monetary Fund (IMF) took a toll on investors’ sentiment. Data released by the State Bank of Pakistan (SBP) showed the local unit closed at 224.16 against the US dollar in the interbank market registering a decline of 0.02% compared to Tuesday's close of 224.11. The largest concern is the repayment of external debt, even though the current account deficit is decreasing as a result of currency depreciation and other tightening measures. Investors are also keeping a close watch on the developments from the IMF. The next $1 billion tranche has been delayed as the government hasn’t met the benchmarks necessary to finish the ninth review of the bailout package. Federal Minister for Finance and Revenue Ishaq Dar claimed last week that Pakistan met all targets for the review. However, the IMF resident chief said discussions with the Pakistani "authorities are ongoing, especially as not all end-September quantitative targets have been met". In a major development, the Finance Division on Tuesday rebutted reports of an “economic emergency” being imposed in Pakistan and said… Read full this story

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