KARACHI, May 7: The country expects an inflow of $2.5 billion by June 30, which will help stabilise rupee falling freely since the beginning of this year.

Sources in the ministry of finance and State Bank said a total of $2.5 billion from various sources, including selling of MCB Bank’s share, was expected to add to the country’s foreign exchange reserves.

“The speculative forces are benefiting from the current devaluation of rupee against the dollar and this was only because of huge oil import bill and decline in the country’s forex reserves,” said the sources.

On Wednesday, the rupee again fell sharply against the greenback and lost 1.5 per cent in a single day. The dollar was traded at Rs66.55 to Rs66.60.

Currency dealers said the speculation was more effective than the demand factor of the dollars. The importers got panic fearing further devaluation that could hit their imports.

“This is true that the dollar is in short supply but the market is still capable to feed the importers and has been providing dollars as per the demand for more than four months,” said Atif Ali, a currency dealer.

He said despite availability of dollars, which is clearly visible from very high rise in the import figures during the last four months, a ‘crisis’ like situation has been created.

Senior officials in the banking circles said that the MCB Bank-Maybank inflows of $680 million and about $100 million of Barclays Bank were expected to come in a month.

At the same time, the $500 million promised by China and $400 million by Saudi Arabia were also expected to come by the end of this fiscal year on June 30.

The officials were of the view that a total $2.5 billion could enter into Pakistan till the end of this fiscal.

The total inflows, included borrowing by the government from various sources. They said the speculators, who played a key role in sharp decline in the rupee value, could face sever dent in their profits.

The State Bank, which has been trying to get hold on the exchange rate, could not pump enough dollars to save the falling rupee and it was mainly the pressure coming from sharp increase in imports.

“The oil is essential for import but the luxury vehicles, including the bullet- proof cars have loaded the import bill making it unbearable for the country,” said Mohammad Imran, head of research at a brokerage house.

The import bill of 9 months was so high that it resulted into a trade deficit higher than the total exports of the country. The trade deficit reached over $14 billion in 9 months.

However, the newly-elected government is yet to come up with any plan to cut the import bills, instead, the minister of finance is trying to borrow $3 billion to meet the immediate need for rising current account deficit.

Sources said that the first tranche of $1 billion from the Asian Development Bank was also expected within this fiscal year.