KARACHI, Pakistan: The value of the dollar against the Pakistani rupee has fallen by Rs.5.86 as stability returns to the country after the July 25 general election.
Pakistan has also received $1 billion from China and is set to receive $1 billion more within a week, sources in the interim finance ministry told the media.
It should be noted that as of July 26, the State Bank had $9.1 billion, commercial banks had over $6 billion, and the total of the country’s foreign reserves stood at $15.72 billion. On August 2, the foreign reserves of the State Bank will go up by $1 billion as China’s loan will be added to it.
History of dollar variations against rupee
The dollar rose to Rs128 in the interbank market on July 16, a 5.3% increase from July 13 when it was trading at Rs121.46. On July 17, the value of the dollar rose to Rs128.40 as the value of rupee fell by another 40 paisas against the US dollar.
In January, the dollar was trading at Rs110.7 against one rupee but has since increased 15.6%, reaching an all-time high of Rs128 on July 16 due to pressures on the country’s external front. Pakistan’s trade gap has widened to $37 billion as imports are 2.5 times higher than exports. This means we are consuming more imported items. This is not sustainable in the long term and leaves the country with fewer dollar reserves to pay for productive imports like machinery and petroleum that support economic activity. A stronger dollar would discourage imports of non-essential items and help stop the dollar drain.