A money dealer counts US dollar notes at a money market in Karachi. PHOTO: AFP
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 Rs100.1, although there is a slight difference on the open market," said currency dealer Mohammad Arshad.
The official inter-bank rate for the dollar is Rs98, 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 $10 billion were below adequate levels.
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@habib-Jakarta. My friend, Pls do not compare yourself with Indonesia. You see their maids outside working indonesia. If you really go and see and be with them then few of the richest ppl in asia are from Indonesia. The culture, the heritage, the passion for their history, the affection they show to people is far far more better than Pakistan. Never in my life of working in 4 muslim country, I heard the name of a muslim guy as arjuna or nakula. They converted to muslim but the way they keep their old age hindu rituals still intact is really amazing. We need to really learn a lot from the javenese people. They are emerging market now. In few years they will surpass few of the asian countries.
@Aijaz: It is not that all democracies have stronger currencies. It is just that your country's priorities are not right. Many of the rich don't pay taxes. Major part of your funds are used for military hardware (disproportionate to your requirements) instead of welfare. No electricity for manufacturing. Railway infrastructure is not utilized fully due to shortage of engines. Your citizens don't feel safe at home due to kidnapping / terrorism. If you address these issues, your country will become a safe place to invest, resulting greater inflow of foreign exchange and your currency will appreciate. At Rs.100 per US$, you have an advantage over your competitors on exports. Why not exploit?.
This is a a failure of the current government and not the democratic process. Our democratic culture has not evolved as much as to allow, rather, enforce the taxation of the rich and proper economic management. It needs to be understood that the fault lies in those practising democracy and not the democracy itself.
Missiles going up, Rupee coming down.
If anyone is interested to know 1 US$=78.4 Bangladeshi Taka
Everyone here is missing an important milestone. Most of the Pakistan debt was deffered for repayments in 2002 for a period of 10 years to participate in war. Now you have to pay it. "Deffering loans is not a good habit", pay now is much better than pay it later with interest. Blame game is not good, live in your means.
@Iyaz Ali: Wrong, latest indian remittance figures comes about 70 billion dollar and highest in the world followed by china.
@Iyaz Ali: Indian remittance in 2011 was $63 billion per World Bank not $30 billion. http://economictimes.indiatimes.com/news/nri/forex-and-remittance/remittances-to-india-rise-to-63-7-bn-in-2011-world-bank/articleshow/12898232.cms
Secondly even Pakistanis expats send remittance of $13 billion. The amount that central bank has is less than the remittance because some of it gets used up to fund the current account deficit (i.e. gap between export and import of trade and services). For many other countries foreign investments also fund part of the current account deficit but that has fallen significantly in the last 4-5 years due to load shedding and security issues.
brothers,it's time for guys to change ur thinking ,taliban and laskar will not make ur way easy but they will make these way tough and tougher atleast take little leason from our country ,
Indians remittances from foreign countries to India is the highest in the world at $30b a year. To think all those Indians combined living outside India have 3 times the central bank of Pak is shocking.
1 Pak rupee is equal to 100 Indonesian Rupiah
No surprises at all. All traditional Pakistan bashers, all Islamophobes, all separatists, nationalists, foreign funded NGO wokers, feminists, tree huggers - all are out, cheering Pakistan's imminent fall.
Let me puncture your baloon - PAKISTAN IS HERE TO STAY. Get used to it.
Finally, currencies go up and down. There are many advantages to be had from being able to extract more rupees for each dollar. Indians are not going to scare Pakistan into giving up principled stand on Kashmir and into surrendering its soverignty and self respect.
@sensible: 146 million dollars become significant because reserves of 5 billion are insignificant. For the size of Pakistan reserves should be at least 10 times the present figure. It's time you guys think of export possibilities and stop supporting Taliban without which no foreign investment will get attracted.
@Ram India's Forex reserves are much higher than the figure you quoted. As on February 1st, 2013 India had a reserve of $296bn and on the same day, Pakistan's reserves were about $8.5bn, but, the tragedy is, even this figure is not genuine. To bolster Pakistan's Forex figures, her good friends, China and Saudi Arabia, had deposited about $3bn with Pak central bank during 2008 or 9 and Pakistan can't use this money for herself without obtaining permission from the depositors. So effectively, Pak's foreign currency reserves are just about $5bn only, a figure far much lower than that of the GDP of India's tiny little state like Goa! And this country takes immense pride in possessing more than 100 nuke bombs, each costing, at least, tens of $millions if not a $billion a piece!! What a farce!
To all bashers don't comment by just reading the headline of story. Please the material. Rupee has fallen because "forex reserve fears as the country repayed $146 million to the International Monetary Fund". I t is not because of inflation or any other issue. The figure will eventually came down in coming days. Don't blindly critisize try to understand the root cause of issue.
@The Real Bloch: And I smell the Indian skunks on this blog as well. Why dont you stick your nose only on the news concerning you. Simple equation brother... Poverty in Pakistan = More strategic assets = problem for India... So, this also concerns us.....
This is not good news. Why cant we ever hear good things on the news about our coutnry? Its heart breaking to watch things slipping out of control.
The value of PR going down by approx 60 percent against dollar in four years period should be a matter of great concern for all Pakistanis. There have been multiple factors for its decline but there are two major factors namely poor law and order conditions prevailing in the country and other being over spending in defence sector and the military incidentally is responsible for both. It has not been able to control militancy in the country and unwisely spending billions on non-productive nuclear arsenal and its delivery system and other military infrastructure to be at par with India. If this colossal expenditure amounting to several billion dollars had been spent on improving electric supply, opening more export oriented industries and education, Pakistan should not have been in such a dire state.
simple reason of depreciation of rupee is lower supply/ availability of US dollar in Pakistan. while its demand is more for various reasons. ( existing as well as perceived import of f goods & services in dollar terms is more than the inflow of foreign currency by way of export of goods & services, inward remittance from expats, foreign investments etc) . Repayment of installment of IMF loan ( outgo of US dollar) coupled with a fear that availability of dollar in Pakistan will be less and therefore persons/ in need of dollars are willing to pay more for the US dollars. If export is increased (due to rupee depreciation exporters will have a better competitive edge on others) PKR may appreciate. If domestic situations (of law & order extremism) improve there Pakistan market will be quite attractive for foreign Direct investment ( inflow of dollars). . It has nothing to do with democracy or dictatorship except that foreign currency loan is not used properly for which it was taken . import bill on oil is one reason for higher demand of dollar..
This news coming in the time of Pakistan testing a missile.
If Pakistan has money to get costly weapons, it definitely has money to feed itself and pay its bills.
IMF and WB should NOT write off the loans and West should pay no aid to Pakistan.
@Yaseer: So it’s better if you concentrate manage your economy properly, at least you have a proper government functioning unlike us which is chaotic all around. Brother the statements intention was not just to offend you. It was also to tell Pakistanis that India prefers to do business with Pakistan and not war... That is in Pakistan's supreme interests... A WIN WIN SITUATION...... We in India believe in 'growing up'... The question actually is - Is Pakistan willing to 'grow up' and stop doing Kargils, Kandahars, 26/11s??
It's good for exports. Start exporting, stop complaining.
Worrisome news. Pakistan's debts are doubled now. Democracy is the best revenge from the people of Pakistan.
And I smell the Indian skunks on this blog as well. Why dont you stick your nose only on the news concerning you.
some wise man once said with his hands up for prayers ... "Pakistan ka Allah hee Hafiz" !!!! remember ???
Well as an indian i wish my pakistani friends best of luck so that they can work harder for a better future. Pakistan on its knees in in no body's interest...
Can we expect a double century any time soon???
we will, we will fight back, be a fighter, we know we can do it, it just needed to end this govt, and we will take our country to its original place. high and high above,
Unable to believe that your reserves are just less than US$10 billion compared to ours of around US$ 280 billion or so. Some Indian companies earn profits of 1 to 2 billion dollars per quarter. It is time Pakistan government focuses more on its economy, fighting terrorism as opposed to India centric actions that will only be detrimental to its interests
At least it is a boon for the exporters. It is time for the manufacturers to take advantage and start exporting more.
We'd have been better under a military dictatorship. Atleast they offer stability and peace. This democracy will ruin Pakistan. I dont think the country will have the strength to endure another 5 years by the likes of Zardari and Nawaz.
thank you zardari & nawaz coalition gov. tthank you very much
Is this also due to metro bus service ? PTI jiyalas? Shahbaz Sharif is the culprit, right? Now if anything bad happens in this country it will be due to metro bus service.
another gift of status-quo democracy!
Jeay Bhutto
Dont waste ur mony on testing missiles.
Do the investment in market so can improve
@Manju: Grow up buddy! We know India is a much-much better placed economy then us & an emerging economic powerhouse till your growth rate started to dip all of a sudden,its 5% now if i am right from 8%. So it's better if you concentrate manage your economy properly, at least you have a proper government functioning unlike us which is chaotic all around.
So happy to know that now my remittance to Pakistan will convert in to more PKR :)
Zimbabwe and Pakistan has more common than love for the game of Cricket. One US dollar = 361 Zimbabwe dollar. With current poor law and order situation who wants to invest in Pakistan. In a country where Talban is acting as a censor board and as extortion of business people by TTP is common my money will go where it is respected and will give me a decent return without headache.
Ancient Indian civilization gave the concept of zero and now modern Pakistan is adding zero to its currency. It’s just a zero two or three after one what’s the difference. Right?
Yes. Congratulations To All Of You.
This was predicted 5 years back when the PPP came into power thanks to Mushraaf.
Thank you PPP.
Pressure on the currency as a result of the loan re-payments is nothing new. In Australia, under Prime Minister John Howard, the Aussie dollar remained at record lows against all international currencies, mainly because his government was repaying 'Labor's debts,' as infamously said by Howard's Treasurer, Peter Costello, as chidding remark directed towards his long time political rival, Labor Prime Minister Paul Keating.
The more important thing however is that repayment of loans does prove that the economy seems to be growing albeit not fast enough to arrest poverty. Debt repayments would allow future leaders to put economic growth on a good footing as we would not be burdened by international considerations and the strings that come attached with these loans.
Australia's current mining boom and the general social engineering that became John Howard's legacy would not have been possible without him repaying Australia's long-standing debts.
Perhaps Pakistan has something to learn from Australia in this case.
Regards Mehroz Siraj australianaffairs.wordpress.com
congratulaton pakistan for this achievement and the way it is celebrated by firing 60 km range hatf ix missile.
time to buy some $$$$$
"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."
In Feb 2008, $1 = 60 PKR. The devaluation of 39 rupees to the dollar is not the same as 39%in fact it is closer to 65%. Basic error in math.
1 US dollar = approx 54 Indian rupees. 1 US dollar = approx 100 Pakistani rupees. Means 1 Indian rupee is not approx equal to 2 Pakistani rupees.... More reason why Pakistan should trade with India rather than war with India...
Congratulations!!! One more feather in Pakistani hat... A Century... All bow down please..
Congratulations to fellow Pakistanis on achieving this 'historical' milestone ! At-least the nation is out there making history !!!
This is just what the financial doctor of the IMF was waiting for. How nice.
Loans, loans, and more loans to support the extravagant lifestyle of the politicians in parliament, their lackeys, bureaucrats, businessmen and agriculturists.
Last year Pakistan borrowed PKR. 600.0 billion and gave away PKR. 700.0 billion in exemptions. Therefore, the common man is paying for the loans and inflation to stay alive and thus support the lifestyles of 'plutocrats' and 'kleptocrats.'
"Democracy is the best revenge." Haaahh! What a shambolic economy. Salams 2013
Congrats. Democracy is the best revenge.
ET. This is because of depreciation not devaluation of the currency. Both are different terms hence entirely different meanings.
Not good at all though!
Its the price of NRO that has brought us an affliction of Biblical proportions, similar to that brought by Moses upon the Pharaoh. Today $1 is equivalent to Rupee 100. I am afraid of the galloping inflation that is coming as a consequence of deficit financing. Like the Turkish Lira we will be buying bread for Rs.100,000 a piece. By then our Lords and Masters will be sitting in London in their luxury homes laughing all the way to the Swiss Banks. As if the Pakistanis did not know what these people are capable off??
So sweet to read this, slipping deeper and deeper and the day is not far to be competing with Zimbabwe's curreny value. This is know as progress.
Congratulations, another gift from a so called democratic government. Now people should realize why there are coups in Pakistan.