KARACHI: On Tuesday, the Pakistani rupee continued its eight-session losing skid versus the dollar in interbank trade.
According to the Exchange Companies Association of Pakistan, the local unit was trading at Rs232 at roughly 1:40 pm, down Rs2.18 from Monday’s close of Rs229.82 (ECAP).
According to Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), it is crucial that all parties get together to discuss and find solutions to Pakistan’s problems.
According to the ECAP official, it was anticipated that the rupee would strengthen against the dollar after the International Monetary Fund (IMF) loan came in. This indeed occurred, as the local pound appreciated by Rs2 after the SBP got the money.
He pointed out that despite receiving funds from the international lender, the government did not receive funding from multilateral and bilateral organisations, so the decline has continued ever since with very tiny gains.
According to Paracha, the World Bank, the Asian Development Bank, and friendly nations like Saudi Arabia, the United Arab Emirates, and Qatar are still hesitant to lend money to and make investments in Pakistan.
The IMF’s Executive Board was about to authorise giving Pakistan the money when the PTI-led governments in Punjab and KP decided they would not comply with the IMF’s standards. Paracha cited political instability as the primary cause of this.
PTI controls a sizable portion of the nation and has its relevance, but at this time, we need political stability and the government lacks a clear direction, he complained.
Despite being in power, all the parties, according to Paracha, are acting as if they were in opposition. “Everyone is playing the blame game; nobody is doing anything to help the people or eager to rebuild the economy.”
But in addition to criticising government officials, Paracha also gave the State Bank of Pakistan (SBP) plaudits, noting that the organisation has over time played a useful role through a variety of measures.
The effect of the floods, according to Paracha, has been pegged at $30 billion by government officials, but he fears that it could actually be closer to $50 billion.
The losses are significant, but we don’t have enough donations to make up the difference, he claimed.
33 million people have been devastated by floods brought on by unprecedented monsoon rains and glacier melt in the hilly north, which have killed around 1,400 people. Homes, roads, railways, cattle, and crops have also been destroyed.