The value of the Pakistani currency fell by Rs 0.09 and ended at Rs278.39 compared to the US dollar in the inter-bank market on Tuesday. This marks the second day in a row that the currency has decreased in value. This decline comes as the International Monetary Fund (IMF) suggested that the rupee should be allowed to devalue even more.
According to the State Bank of Pakistan (SBP), on Monday, the rupee ended at Rs278.30 against the US dollar. The International Monetary Fund (IMF) predicts that by June 2025, the rupee will drop further to Rs329/$, which is about an 18% decrease over the next 13 months.
Market experts say the US dollar has strengthened against other major currencies worldwide, which has put pressure on the Pakistani rupee. Also, there’s been more demand for dollars due to an increase in imports compared to the supply of dollars.
Over the past eight weeks, the rupee has fallen by 0.49%, or Rs1.36, since reaching a high of Rs277.03/$ at the end of March 2024.
However, in the open market, the Exchange Companies Association of Pakistan reported a slight increase of Rs0.11 in the rupee’s value, settling at Rs 279.43/$.
Despite money coming into the Roshan Digital Account (RDA), which remained steady at $171 million in April 2024, the rupee continued to decline in the inter-bank market. Overall, there have been gross receipts of $7.83 billion in the past 44 months.
In April, investments from overseas Pakistanis in the Naya Pakistan Certificates (NPC) and Pakistan Stock Exchange (PSX) were higher than the six-month average of $151 million. This helped keep Pakistan’s foreign exchange reserves above $9 billion, which are held by the SBP.
Since the launch of the RDA scheme in September 2020, non-resident Pakistanis have utilized $4.925 billion out of the total inflow of $7.83 billion. They’ve also withdrawn $1.58 billion since the start of online banking and investment.
As of April 30, 2024, the total funds available for repatriation were calculated at $1.32 billion. Out of this, overseas Pakistanis invested $317 million in NPC, $523 million in Shariah-compliant NPC, $33 million in stock exchange-listed companies, and other liabilities amounted to $28 million.
