Pakistan expected to halt fall of rupee, says Fitch Ratings

ISLAMABAD – Pakistan is not expected to further devalue its currency as pressure on the rupee has decreased, said an official of Fitch Ratings. 

 “We currently do not expect a large further devaluation of the Pakistan rupee,” Krisjanis Krustins, a Hong Kong-based director at Fitch told Bloomberg on Friday as the South Asian country is scrambling to revive the loan deal with the global lender.  

“Although the currency has been very stable over the past few months, pressure on the reserves of the State Bank of Pakistan has also been contained, which suggests minimal interventions to support the currency,” the official said. 

The cash-strapped Pakistan’s ninth review has been pending since November last despite implementing the conditions laid forth by the IMF. 

The global lender said that it is working with Pakistani government to fix its currency market and other issues before it issues the funds. 

The IMF programme is set to expire on June 30 this year but the government was hopeful of revival the bailout package. The international loan lender is yet to release about $2.5 billion to Pakistan to complete the programme. 

It is recalled that the rupee has plunged more than 20% this year against the US dollar after officials started devaluing the currency in January this year.

A day earlier, Minister for Finance Ishaq Dar said that Pakistan had tried its best to fulfill all necessary conditions of the IMF.

Talking to a private television channel, he said IMF should not object to presenting a people-friendly budget. In reply to a question, the Minister said there is no risk of default of the country. 

 https://en.dailypakistan.com.pk/09-Jun-2023/live-pakistan-sets-ishaq-dar-presents-federal-budget-for-fy24-amid-economic-challenges