Karachi, October 31, 2012 (PPI-OT): Pak Rupee has continued to devalue steeply against US dollar due to hefty payments of import proceeds, foreign loans and other obligations.
According to Alfalah Securities Limited, the Pak Rupee has dropped steeply to PKR 95.8764 to a dollar on October 30, 2012 as compared to PKR 95.8178 on October 25, 2012.
Pak Rupee has failed to stabilize even when the international commodity prices are on the lower side and when the economy has observed continuous higher inflows of remittances however, none of these factors have provided a cushion to the declining fx reserves and depreciating local currency. Fx reserves and Pak Rupee are likely to further decline in the upcoming time owing to increased debt repayments and high import bill hence, exerting additional pressures to the economy on the external front.
Pakistan has to repay instalments to the IMF of ~USD 148 million on November 11 and November 18, 2012 each and ~USD 400 million on November 26, 2012 which is likely to drag the Pak Rupee down further.