Dubai: If UAE expats were looking to remit more Pakistani rupees back home, the time is ideal as the current remittance-beneficial rates are not expected to stay as cost-effective for long. Here's why.
The Pakistan rupee slipped to 64.4 against the UAE dirham on Thursday, weakening further versus 64 as at Wednesday's close. Check the latest forex rates here. The Pakistani rupee continued to sink against the US dollar for the ninth straight session in the interbank market, hitting a new record low of 236 on Wednesday.
The figures released by the State Bank of Pakistan (SBP) showed the greenback closed at an all-time high of 236.02 rupees in the interbank market, up from 232.93 rupees a day earlier as it shed 1.31 per cent, the Dawn newspaper reported. Since the start of 2022, the rupee has lost over 30 per cent of its value, according to the Foreign Exchange Association of Pakistan.
However, the Pakistan Minister for Finance and Revenue Miftah Ismail, on Wednesday expressed hope that the pressure on the rupee would ease in a couple of weeks.
"From the next month onwards, incoming dollars in Pakistan by way of exports and remittance will be more than the outgoing dollars by the way of imports and debt servicing. Therefore, pressure on the rupee would subside and the currency would appreciate," said Ismail.
He said that multiple factors including the US dollar reaching historic highs internationally, interest rate hikes, worldwide inflation and supply chain disruption have led to the rupee's depreciation.
"Significant additional financing will be unlocked from the IMF and may well provide a significant confidence boost to the markets," Krisjanis Krustins, a Hong Kong-based director at Fitch, was quoted as saying by Bloomberg on Wednesday.
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