Dollar rate climbs five paisas to close at Rs124.25
Last updated on: 30 August,2018 05:26 pm
Dollar rate in open market was recorded at Rs124.30.
KARACHI (Dunya News) - Dollar rate in interbank market Thursday increased by five paisas to close at Rs124.25, whereas the rate in open market was recorded at Rs124.30 after dollar declined by 20 paisas.
Pakistan is on the verge of a balance-of-payments crisis, which threatens the stability of its currency and its ability to repay debts or pay for imports. Its budget deficit has grown steadily over the past five years, from four per cent to 10pc of GDP.
Imports have skyrocketed, mainly due to rising oil prices. Between July 2017 and March, about 70pc of the country’s import bill was for energy, machinery and metals, according to a State Bank of Pakistan report. Meanwhile, exports - mainly textiles - have increased only slightly.
As a result, the foreign currency reserves have declined. This covers less than two months of imports, analysts say. Meanwhile the rupee has been devalued several times since December, fuelling inflation.
Finance Minister Asad Umar said the government has yet to decide on a possible IMF loan and the final decision will be taken after taking on board parliament.