KABUL (BNA) The devaluation of the rupee, the Pakistani national currency against the US dollar continues to record and the delay in the agreement between the government of Islamabad and the International Monetary Fund to implement the loan program is a factor in intensifying inflation, rising fuel prices and pressure on foreign exchange reserves.
Tuesday, the US dollar equals 212 Pakistani rupees, the latest record in the devaluation of the Pakistani national currency, while Islamabad-based officials are eyeing the green light from the International Monetary Fund and hope to control the devaluation of the rupee by finalizing a new loan. Quoted Pakistan media.
Some economic observers in Pakistan have said that with rising inflation and the unprecedented depreciation of the rupee against the US dollar, we see that the government is now relying entirely on IMF funding.
Following the implementation of fuel and energy subsidies by the former Pakistani government, the International Monetary Fund (IMF) loan facility for the country was suspended in early April this year. It exceeded Rs. 200 per liter, and the government increased fuel prices three times in less than two weeks.
The then Pakistani government signed a $6 billion 30-month loan program with the International Monetary Fund in July 2009, but when the previous government implemented fuel and energy subsidies, the IMF also Stationary paid about $3 billion stopped.
Pakistani Finance Minister Muftah Ismail told the media that Islamabad hoped to reach an agreement with the International Monetary Fund to rehabilitate the loan facility within the next few days.
Some diplomatic sources in Pakistan also claimed that the United States had agreed to help Pakistan negotiate with the International Monetary Fund.
The unprecedented rise in oil prices in Pakistan, coupled with economic woes and inflation, which has left people severely facing livelihood challenges, has forced Pakistani officials to plan for a state of emergency and austerity.
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