KARACHI: Pakistani rupee extended losses against the US dollar to the 20th successive session as the local currency depreciated 0.14% in the interbank market on Tuesday.
As per the State Bank of Pakistan (SBP), the rupee declined by Rs0.32 to close at 228.66. During the ongoing fiscal year, the rupee has depreciated 10.47% against the greenback.
On Monday, the rupee had registered a loss for the 19th successive session against the US dollar to settle at 228.34 after a decrease of Rs0.19 or 0.08%.
Interbank closing #ExchangeRate for todayhttps://t.co/f7gJhz7b1V pic.twitter.com/tbBc6ENdMy
— SBP (@StateBank_Pak) January 17, 2023
In a key development, the import of raw materials and inputs will be completely facilitated for exporters of textile items, leather goods, surgical equipment, carpets, and sporting goods, according to Monday’s statement by Finance Minister Ishaq Dar.
The Federal Board of Revenue’s (FBR) Export Facilitation Scheme (EFS) must be completely implemented in order for all significant exporters to be included in the program and receive duty- and tax-free inputs for exporting goods.
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Meanwhile, the depleting forex reserves with the State Bank of Pakistan below the $5 billion mark — enough for less than three weeks of import — is making the investors jittery.
The country has been facing a serious dollar shortage, which is resulting in restricted imports of even food and industrial raw materials. The latest position of foreign exchange reserves reflects that the country doesn’t have sufficient dollars to cover even one month of average imports. In the prevailing situation, Pakistan needs to complete the much-delayed ninth review of the IMF for the release of $1.18bn.
