Currency: Rupee weakens against dollar

KARACHI: In the currency market, the Pakistani rupee weakened to 96.08/15 to the dollar, compared to Friday’s close of Rs96.01/07. The currency has remained under pressure due to debt servicing to the International Monetary Fund (IMF). Pakistan recently repaid $394.3 million on an IMF Stand-By Arrangement loan. The country has to pay $3.4 billion in 2012-13, $3.43 billion in 2013-14 and $1.35 billion in 2014-15 to retire IMF’s loan. According to reports, a balance of payment crisis is being predicted after March 2013, as the country’s forex outflows are likely to remain at $1 billion per month, which may force Pakistan to negotiate a fresh IMF programme if pressure is not arrested. Overnight rates in the money market ended at 9% on Monday, Friday’s rate is not available.

Published in The Express Tribune, November 27^th, 2012.