Federal Minister for Finance and Revenue Muhammad Aurangzeb expressed optimism about the stability of the Pakistani rupee (PKR) despite the looming repayment of $3.5 billion debt by June 2024.
In a recent interview with Bloomberg, Aurangzeb expressed confidence that the PKR would remain stable in the short to medium term, hovering around current levels of 277-278 against the US Dollar for the next six months.
“I don’t really see a huge pressure on the rupee at this point in time as we move forward. I think it’s going to remain range-bound around these [current] levels for like six months or so,” he stated.
Aurangzeb identified oil prices as the primary wildcard that could potentially disrupt this stability, citing geopolitical tensions as a possible trigger.
Aurangzeb remarked that the current level of balance between remittances, exports, and imports had led to a notable reduction in the current account deficit. He recalled the current account surplus in February, attributing it partly to decreased demand for imported CKD kits in the auto market due to rising car prices. This reduction in the deficit is expected to positively impact Pakistan’s overall balance of payments.
“The current account deficit is going to help us in our overall balance of payment position. It will support that in terms of reducing the gap,” he added.
Overall, Aurangzeb was optimistic about Pakistan’s economic outlook, with a focus on managing potential risks, particularly concerning external factors such as international oil prices.
