On Monday, the US dollar gained seven paisas at the start of interbank trading, bringing its new price against the Pakistani Rupee to Rs278.40, up from Friday’s close of Rs278.32.
The Pakistani Rupee is under pressure due to potential cuts in the annual development budget and ongoing negotiations between Pakistan and the International Monetary Fund (IMF). The IMF has demanded a moratorium as part of a new loan program, emphasizing the need to reduce import restrictions.
The IMF has urged the Pakistani government to remove subsidies for export sectors and lower import duties in the upcoming budget. The IMF insists on a phased removal of import restrictions, and the Ministry of Finance has agreed to reduce import duties accordingly. However, the Ministry of Commerce has stressed the importance of protecting local industry, agreeing to reduce tariffs but opposing the complete removal of import restrictions to safeguard the local market.
