Policy commitments made by Pakistani authorities to resume support programme continue to apply, says IMF representative
KARACHI: The Pakistani rupee continued its bullish run against the dollar for the eighth straight interbank session on Tuesday as newly appointed Finance Minister Ishaq Dar vowed to bring the dollar below Rs200.
The rupee was changing hands at Rs 225.5 per dollar after gaining 1.79 during early trade at the interbank market around 10 am.
Since September 2, the dollar has lost Rs 13.71 against the local unit and due to the massive fall in the value of the dollar, the total debt of the district has been reduced by a whopping Rs 1700 billion.
'Actual value of dollar is less than Rs200'
A day earlier, Finance Minister Ishaq Dar accused PTI Chairman Imran Khan of destroying the economy and assured the nation of getting the dollar below 200.
"The real value of the Pakistani rupee is less than 200 against the dollar and it will be reduced because it is currently undervalued," he said in an interview with Hamid Mir on Geo News' Capital Talk.
He has strongly favored interventions in currency markets in three previous jobs and is also expected to strengthen the currency, which closed at Rs 227.29 against the US dollar on Monday.
Dar said Imran Khan's speeches at his public rallies reflected his frustration and deals and favoritism were part of Khan's destiny. "Imran contested elections by breaking agreements and organized demonstrations by breaking agreements," he said.
"Pakistan Bureau of Statistics (PBS) is an independent institution and does not engage in manipulative activities," he said while replying to a question about PTI leader Hammad Azhar accusing Dar of manipulating economic data.
The finance minister said, “Prime Minister Shahbaz Sharif himself told me that during the UN General Assembly (UNGA) meeting where Miftah was also present, he suggested to the IMF officials to freeze taxes, which they did not reject.
"I believe people tired of floods and inflation should not be burdened further," he said, taunting his PML-N colleague for "burdening the masses" with his politics. Dar said that the depreciation of the rupee has caused a spike in inflation, adding that the sufferings people are currently going through cannot be forgotten.
He said speculators capitalized on the rising value of the dollar against the rupee and made a fortune. The finance minister said that the credit for the deal with the IMF goes to the PMLN-led government.
'Commitments made by Pakistan for loan programme to continue to apply'
On Monday, the resident representative of the International Monetary Fund (IMF) said that the political commitments made by the Pakistani authorities to resume the support program remained in place.
"The political commitments made by the Pakistani authorities in the seventh and eighth reviews of their IMF support program remain in place," said Esther Pérez Ruiz, the IMF representative in Islamabad.
She said policy discussions, including how to target support for those affected by the floods while maintaining macroeconomic stability, would begin in the coming weeks after a damage assessment report is available, Reuters reported.
