Rupee likely to remain under pressure because of IMF repayments - File photo
Rupee likely to remain under pressure because of IMF repayments - File photo

KARACHI:The Pakistani rupee on Monday sank to an all-time low against the US dollar over Forex reserve fears as the country repayed $146 million to the International Monetary Fund.

The rupee fell to 100.1 to the greenback in trading in Karachi, down from 99.30 on the open market Friday, and has now lost 39 per cent of its value against the US currency since March 2008.

“We have traded the dollar at 100.1 rupees, although there is a slight difference on the open market,” said currency dealer Mohammad Arshad.

The official inter-bank rate for the dollar is 98 rupees, but Mohammad Sohail, who heads brokerage firm Topline Securities, confirmed it had crossed 100 on the open market.

Pakistan had a $10.7 billion IMF loan until September, but had drawn only about a third of it. The government has indicated it would not seek a new loan.

Pakistan repaid $145.79 million to the IMF on Monday and is scheduled to repay another $375 million on February 26, according to Syed Wasimuddin, spokesman for the country's central State Bank.

So far Pakistan has repaid $2.57 billion, $1.5 million this fiscal year, ending June 30, according to the central bank.

“The rupee is likely to remain under pressure because of IMF repayments,” said Sohail.

“The foreign exchange reserves have declined to $8.7 billion as of January 31 from $10.8 billion at end-June 2012,” said the central bank last week.

The IMF last November urged Pakistan to reduce its large budget deficit to bolster the struggling economy's resiliency, noting that foreign exchange reserves under $10 billion were below adequate levels.

Updated Feb 11, 2013 08:44am

More From This Section

Comments (15) (Closed)

Feb 12, 2013 07:45pm
elections. just about
Feb 11, 2013 01:15pm
And they live there on welfare in a small cube like apartment.
Feb 12, 2013 12:57am
Why bring Islam everywhere?
Feb 11, 2013 10:26am
That's a sad state...both India and Pakistan should focus entirely on building their economies, that's where real strength lies.
Feb 11, 2013 01:18pm
Until common people of these nation wake up and shake their faith, these leaders and monitory institutes will take advantage of them.
Feb 11, 2013 09:48pm
Karachi stock exchange is doing very good.Its time to make money through forex and stocks.
Feb 11, 2013 09:27am
sir, i feel there is great scope to increase forex reserves.if true followers of islam pay taxes sincerely, fiscal deficit will come down. feudal lords should be taxed heavily. there is an urgent need for land reforms. military officers and civilian officers, mnas and membersof provisional assembly should be brought under tax orbit.. but who will bell the cat?
Feb 11, 2013 01:20pm
True followers of Islam do pay their fair share. The problem is where that share goes. The trust on these so called leaders is fainted and your can not develop any nation on individual level.
Feb 11, 2013 07:36pm
Rupee falling, stock index rises, national reserves falling.......whats going on?
Feb 11, 2013 10:45am
I'm waiting for the day when all our so called leaders pack up and leave the country saying "there's nothing left here anymore", we are moving to London where all our money is.
M. S. Alvi
Feb 11, 2013 10:58am
You should do it.
Feb 11, 2013 11:05am
Urgent need to reduce defense budget and also increase tax base..................too few people under tax umbrella . Mainly the ordinary salaried class from whom the tax is deducted at source at the time of salary payments must be bearing the burden. It is a vicious cycle as a large amount of political support and funds may be coming from people/organisations/corporations who do not DESIRE to pay taxes. They would rather seek political patronage and mileage by direct contributions to parties. No or minimum revenue means no funds for development projects, loan repayments and especially for education sector. An illiterate society is a bomb waiting to explode !! Come out of it before it consumes the country. But which party will Bell the cat ! or is it that a revolution is needed !.
N K Ali
Feb 11, 2013 11:56am
Excellent reply. That is the way to hit them...directly on the face. Salams
Feb 11, 2013 03:09pm
Pakistan Govt.has not taken enough steps to reduce/eliminate corruption.(mildly putting it.).Do our politicians even read all these comments on your(dawn) pages, leave alone taking corrective action..Or all of us are just blowing hot air and wasting time, being just satisfied that our comments have been reproduced in the newspapers/net. concerned.
Feb 11, 2013 02:48pm
Waiting to see Rs.1000 per Dollar.