The exchange rate of the Pakistani Rupee with the US dollar is subject to uncertainty owing to the political and economic turmoil in the country, currency experts and dealers say, Pakistani media reported.
Atif Ahmed, a currency dealer in the interbank market was reported as saying, "Foreign exchange reserves of the country, particularly of the State Bank, have been declining, which is sending a strong negative signal to the currency market." Dawn newspaper reported.
The economic crisis has led Pakistan to import essential items from other countries like petroleum, machinery, vehicles, textiles, vaccines, expensive palm oils, and even wheat and sugar. As per Ahmed, the price hike on the import bill indicates that the trade deficit will continue in the coming months.
"We paid over USD14 billion to import petroleum products during the first nine months (July to March) of this fiscal year, almost twice as compared to a year ago," Ahmed added
Aamir Aziz, a manufacturer, and exporter of finished textile goods also affirmed that in February large-scale manufacturing companies experienced a growth of 8.4 per cent which demonstrated an increase in industrial activity.
"The demand is still high. Importers are willing to buy more, but the State Bank's restrictions have kept buying and selling at a certain level," said Atif Ahmed, the currency dealer.
As per reports, Pakistanis withdrew an amount of USD 329 million from March 25 to April 8 from commercial banks. A rollover payment of USD 2.4 billion from China awaits Pakistan as the latter has already cleared the due amount to China.
Bankers said the country still needed USD 15 billion for debt servicing and completing other foreign commitments since the foreign exchange reserves of the State Bank have reduced from USD 20.07 billion to USD 10.5 billion.
( With inputs from ANI )
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