Pakistani Rupee Recovers by Rs. 8 After an Early Morning Crash [Updated]

The dollar is flying high in the inter-bank market after the Pakistani rupee registered a steep fall of Rs. 8 against the US currency.

The dollar stood at Rs. 134 at the market closure on Thursday; it is now being traded at Rs. 142 in the market.

The sudden rise of the US dollar has badly affected Pakistan’s foreign debt as well.

With the rupee’s devaluation, it is estimated that the external debt held by Pakistan has risen by Rs. 760 billion.

Experts believe that the country’s balance of payment crisis and falling foreign exchange reserves are the primary cause of currency’s devaluation.

Muhammad Sohail, an Economic Expert, said while speaking at a local TV channel that in the coming weeks, the rupee could slump to as low as Rs 150.

Some experts state that rupee’s weakness may be because Pakistan has still not received a bailout package from IMF due to strict conditions.

The Finance Minister, Asad Umar, however, believes that the country’s balance of payment crisis has been cut to half and that Pakistan did not need to approach IMF for a loan during this point in time.

This is the second time in 7 days that the dollar has touched record highs. On Friday, November 23, the US currency rose to Rs. 135.30 in the open market.

Update: Rupee Regains Footing

The rupee regained its value against the US dollar after day-long volatile trading on Friday.

In the morning session, rupee plunged to as low as Rs. 144 against the US bill. This was the sixth devaluation in the space of a year.

However, it regained footing and was trading at Rs. 136 against dollar when the market closed, market participants said.

“Today is a circus,” said one market participant. “Let’s hope there’s some sanity (soon).”

Earlier, the Finance Minister, Asad Umar had stated that the dollar’s value surged because of the government’s decision to provide subsidies to the foreign investors.

He further mentioned that it is the State Bank of Pakistan which determines the rupee-dollar exchange rate, not the government.

This is story was updated to include the latest updates from the market.

  • I am worried about future economic out look

    Current Govt Financial wizards and economist and all former Finance ministers, should site together to evolve strategy for bringing down $ to Rs 100 back

    There must not be politics on economic front.

    There is no harm to even consult Ishaq Dar, Mifta Ismail. Its all Pakistanis duty to safe guard the interest of Pakistan

  • Zardari Bola sara khazana Musharaf khali ker gaya
    Ganja Bola sara khazana Zardari khali ker gaya
    Imran Bola sara khazana Ganja khali kar gaya

    issi tarah saray politician , awam ko Ch**tiya banatay rahay gay….

  • Your One Lac on 30th November 17 was $952
    Your One Lac on 30th November 18 is $746
    Loss 27% in terms of $

    So keep on arguing and keep on loosing your wealth…..

    Anyone who advocates that Rs should be depreciated is actual enemy of Pakistan and masses

    We may keep $ at Rs 70 and print money to subsidize the exports by refunding the difference to exports. Its so simple but our financial wizards are so dumb that they don’t apply their mind at all

    • And your argument that we should set the fox to guard the hen house indicates that you haven’t even been to primary school yet. Please take my nickname to heart this time and educate yourself. It’s really quite useful.

    • It’s losing btw, not loosing. If you can’t spell for s*** or tell the difference between two very different words, should you be arguing about either politics or economics? Please, go to kindergarten and suck a lolly there.

      • Kia chwal mari hay ap nay

        Instead of argument you are criticizing me. Finding spelling mistakes(typos).

        It shows your mental immaturity .

        Munay bhai lagay rahoo, chawaleen maranee

    • Hahaha! The guy who thinks that using violence against children and calling it “discipline” is not only A-OK but mandatory is telling people to grow up. Child abusers telling people to grow up, lmao. Here I thought I had seen everything.

    • The arguments you put forward are absolutely terrible and will likely cause Pakistan to go bankrupt if implemented.

      A dollar at 70 would completely wipe out Pakistan’s reserves within 6 months. No sane investor would be willing to invest in Pakistan if the PKR/USD parity was that low. Imports would go through the roof because everything would be cheaper to import. As for your “genius” idea about printing money, look up what happened to Zimbabwe who also had this brilliant idea a while back; hint: their economy collapsed

      You honestly sound like a student who read 1-2 chapters in economics and thought he could solve every problem. PKR depreciation was a necessary step (a consensus agreed upon by almost all economists and analysts) to alleviate some of the economic problems Pakistan is facing.

      • “Imports would go through the roof because everything would be cheaper to import.”

        To curb imports we can simply levy heavy import duty. US recently did this for products imported from China

        Why can’t we evolve a strategy for our national interest to keep the dollar low/stable ?

        All economist from Pakistan should start thinking out of the box and I am sure you may come up a solution safeguarding your national interest not IMF agenda

    • College mein economics parh li hoti toe aisie chawlaein na marte ap :

      “We may keep $ at Rs 70 and print money to subsidize the exports by refunding the difference to exports.”

      Clearly you dont know how money and currency valuation works i would recommend educating yourself first before advising others.

      • Export subsidy

        Export subsidy is a government policy to encourage export of goods and discourage sale of goods on the domestic market through low-cost loans or tax relief for exporters, or government financed international advertising or R&D.

        For many years, the governments of wealthy industrial countries, including the United States, Canada, Japan, and much of Europe, have subsidized exports. Many other are also doing this silently. China took such measure and became world economic power

      • According to Wikipedia

        The economy of Pakistan is the 25th largest in the world in terms of purchasing power parity (PPP), and 42nd largest in terms of nominal gross domestic product. Pakistan has a population of over 207 million [27] (the world’s 5th-largest), giving it a nominal GDP per capita of $1,641 in 2018

        We have progressed a lot in last 15 years Govt Revenue from Rs 1000 Billion to Rs 4000+ billion

        Per capita income has tripled in last 15 years

        All other economic indicators are positive

        (spare some time to read all positive indicators of Pakistan’s economy at tradingeconomics dot com)

        Now why our economic wizards of $300 billion economy always talk about Rs devaluation?

  • I think the Heading is misleading, it should say that Rs. has gained Rs. 8 under the Leadership of PTI/IK.

  • Hey ProPakistani Admin: Your website is unreachable from Saudi Arabia. I’m using VPN to just post this comments. Please fix.

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