Making gains: Rupee to rise further in coming weeks, says Zubair

Minister says currency strengthening due to expected forex inflow.

ISLAMABAD: The value of Pakistani rupee against the US dollar will strengthen further in the next few weeks, says Mohammad Zubair, the Minister of State for Privatisation.

The currency notched up gains because of expected inflow of foreign exchange as a result of release of the International Monetary Fund’s (IMF) next loan tranche of $1.1 billion and the issue of Sukuk (Islamic bonds) in the international market, Zubair was quoted as saying in a press release.



“Owing to prudent policies of the government, the rupee appreciated to Rs98 from Rs111 in July 2013,” he said, adding the currency weakened for a short period due to uncertainty caused by sit-ins in Islamabad, but now it was again gaining strength.

Commenting on the winning streak at the Karachi Stock Exchange (KSE), the minister stressed that the 100-share index had crossed 31,000 points for the first time in the country’s history.

“Since the PML-N government came to power, the stock index has been recording a steady rise, which shows that the overall economy is strengthening because of pro-business policies.”

He again blamed the sit-ins for some decline in the bourse, but stressed that the market would continue enjoying a bullish trend.

Meanwhile, Islamabad Stock Exchange Director Zahid Latif Khan pointed out that the IMF’s willingness in the recent Dubai talks to release the next loan tranche of $1.1 billion triggered the stock market rally.

Moreover, he said the prime minister’s visit to China, where he signed agreements for a slew of projects worth $45 billion, also played the role of a catalyst in the stock market’s surge.

Khan was of the view that falling prices of commodities in the international market including gold, oil and coal would benefit local traders and help boost the stock index.

Published in The Express Tribune, November 13^th, 2014.

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