The Pakistani rupee has lost over 125 per cent of its value against the US dollar, sliding from Rs125 per dollar in June 2018 to Rs285 per dollar in June 2023. Several key factors have contributed to this situation, including a substantial trade deficit, diminished foreign exchange reserves, reduced foreign investment and the heavy burden of foreign debt servicing. These factors have had a detr
The stock market experienced subdued activity in the outgoing week primarily because of the prevailing uncertainty surrounding the completion of the International Monetary Fund (IMF) programme, said Arif Habib Ltd. On the economic front, Pakistan recorded a current account surplus of $255 million in May versus a surplus of $78m in April. Additionally, the government raised over Rs2.4 trillio
BUDGET 2023-24 that was passed by parliament yesterday after the introduction of large fiscal-tightening measures to sweeten it for the IMF might resuscitate the bailout deal with the Fund, stalled since last November. As Finance Minister Ishaq Dar said in his closing budget speech, the IMF’s concerns regarding the original budgeted deficit of 6.5pc of GDP have been largely addressed through th
AMID much fanfare, the government last week announced an “economic revival plan” focused on what it calls “untapped potential in key sectors of the economy” to attract foreign direct investment from “friendly countries”. A new body has been created, the Special Investment Facilitation Council, to undertake this task. Any initiative to address the dire economic situation is to be welcomed. But s
Despite divergent views and apparent distrust, as evident from public pronouncements during stretched negotiations on the resumption of the International Monetary Fund (IMF) programme, both Pakistan and the IMF staff remain engaged. That the negotiations are not breaking down indicates that the clinching of a deal would be the best option for both sides. With the next IMF tranche of $1.2 billio