On Monday, the stock market continued its downward curve as the KSE-100 dipped over 1,300 points during trading. KSE-100, the benchmark index of the Pakistan Stock Exchange decreased by 1,328.06 points or 3.39% to 37,898.29 points.
KARACHI: The US dollar soared to Rs134 in the interbank market on Tuesday.
The dollar was up by Rs9.75 as market opened today as it stood at Rs124.25 when the market closed on Monday.
According to analysts, the rapid increase in the dollar is due to the government’s decision to approach the International Monetary Fund (IMF) to deal with the prevalent financial crisis.
On Monday, the stock market continued its downward curve as the KSE-100 dipped over 1,300 points during trading. KSE-100, the benchmark index of the Pakistan Stock Exchange decreased by 1,328.06 points or 3.39% to 37,898.29 points.
Finance Minister Asad Umar in a video message on Monday night said talks with the IMF will start “immediately” as Prime Minister Imran Khan has given a go-ahead to do so. He said the country is going through a tough time, which has been left behind by the previous government. “We have to find a way to get out of this difficult situation.”
As per sources the Finance Minister Asad Umar had requested the IMF to lend US $ 10.00 Billion weeks ago but IMF after fulfilment of its major demands (which the current government has already fulfilled) may lend $6 to $7 Billion only which is not a long term solution but just a month or two economic burden gap filler.
Sources within the Ministry of Finance informed that the IMF would demand Pakistan to reduce its non-development expenses to bring down budget deficit. They said the world organisation will also ask Islamabad to expand tax net in the country.
The massive increase in dollar rate against Pak Rupee has led to severe uncertainty in the market and economy of Pakistan and will lead to very high inflation.