Rupee’s Current Value Against Dollar is Fair: Governor SBP

The Governor for State Bank Pakistan (SBP) Tariq Bajwa, following a meeting of National Assembly Standing Committee on Finance, has declared that the Rupee has fallen from 3% to a new low at 5% since its depreciation in July this year.

Governor Bajwa described this current state of the Rupee versus the Dollar as “near equilibrium.” He said that “the Rupee is at its fair value.”

According to SBP, it is fairly plausible that further depreciation of the rupee might not occur, although the market will decide the value and nothing can be said for certain.

Economic Situation of Pakistan, According to SBP

Revealed by Dawn, other updates on the present economic stature of Pakistan include:

• An SBP declaration of $14.5 billion in foreign exchange reserves, which is expected to suffice commercial and import demands for now.
• An estimated financial gap of $11-12 billion. Current details about the likelihood of bridging this gap are uncertain.
• A suggestion by SBP for a possible absence of the requirement for short-term commercial borrowings. Although the capital market, which raised $2.5 billion recently, was not discussed.
• An approximate $6 billion for foreign debt payments and $3.5 billion to make it through the current fiscal year.
• Approvals by the Standing Committee for the SBP Services Corporation Amendment Bill 2017, for the appointment of external auditors and managers for the management of SBP, and a loan for Agriculture Commercial and Industrial Purpose Bill 2017, for which the reasons are currently unclear.

No Finance Minister

Regarding the absence of a finance minister, the National Assembly’s Standing Committee expressed displeasure about the lack of government involvement in fiscal evaluations at present and even put forward the name of Parliamentary Secretary of Finance Rana Muhammad Afzal for the missing office.

Based on previous statements by former finance minister Hafeez Pasha, which suggest subsequent financial crisis for Pakistan, it appears that the committee is attempting to lower pressure while not outright denying uncertainties.