Govt says ‘administrative measures’ stabilised rupee’s value

Info minister tells Senate value of country’s currency would further improve after receiving IMF’s second tranche

ISLAMABAD:

Caretaker Minister for Parliamentary Affairs, Information and Broadcasting Murtaza Solangi on Monday informed the Senate that the value of rupees has stabilised owing to the administrative measures of the incumbent government.

The Pakistani rupee hit a record low of 307.1 against the dollar on September 5 but has made a sharp recovery since the country's security agencies began taking action to curb black market operations.

The International Monetary Fund (IMF) has projected that the average rupee-dollar parity would remain below Rs300/$ by the end of the current fiscal year on June 30, 2024, compared to its earlier assumption of Rs305.20/$.

The Express Tribune earlier reported that the global lender did not approve Islamabad’s policy to “manage” the rupee during the recent visit by IMF officials to Pakistan.

Read more: Pakistan to receive $700m from IMF

Winding up the discussion on the motion raised by Senator Kamran Murtaza regarding the devaluation of the rupee and shortage of US dollars in the market resulting in high inflation, the interim information minister said that the government controlled the “informal channels” i.e. hundi business in the country.

Solangi expressed the hope that the value of the country’s currency would further improve after receiving a second tranche from the IMF after its review.

The position of balance of payments was much better than earlier, he said, adding that the State Bank of Pakistan (SBP) was in the process of doing major restructuring in exchange companies.

Earlier moving the motion, Murtaza said that the value of the dollar had continuously been increasing against the Pakistani rupee which caused inflation. He called for adopting prudent policies and measures to grow the national economy and control the dollar exchange rate.

Also read: Rupee faces ongoing strain amid IMF talks

Senator Mohsin Aziz said that the economy has been deteriorating, adding that low exports and remittance besides smuggling were major causes of the increase in the value of the dollar and inflation.

Senator Danesh Kumar lauded the caretaker government for controlling the dollar and bringing back its value to Rs275. He also called for supporting the policies of the incumbent government to win the confidence of the business community.

Senator Dilawar Khan also appreciated the interim government for taking pragmatic steps to control the price of dollar.

The dollar price was not only controlled but also the Pakistan Stock Exchange witnessed an upward trend owing to the measures of the government, he added.

Senator Hamayun Mohmand said that special focus should be given to enhancing the country’s exports, adding that the export-oriented economy of Pakistan was the sole solution to strengthen the rupee.

He also called for lowering the interest rate as higher rates curtailed the circulation of money.

Senator Mohammad Ishaq Dar, who also held the portfolio of finance minister during the Pakistan Muslim League-Nawaz (PML-N) coalition government, said that there was no doubt that the devaluation of the currency was a dangerous thing which was also disastrous to the economy.

Dar said that Pakistan did not have unlimited resources like developed countries. He further said that the real effective exchange rate of the dollar should be Rs244 to Rs250 as per his assessment.