Tuesday Oct 09, 2018
KARACHI: The US dollar soared to Rs134.50 in the open market on Tuesday, lending yet another blow to the rupee.
The US dollar gained by over Rs6.50 to touch the new high in the open market, while in the interbank market it rose by Rs9 to reach Rs133.64.
The strengthening of dollar against rupee also saw a record increase in gold prices in the country over the last five years.
The price of one tola (12 grams) gold recorded a hike of Rs1700, hitting Rs62,000. Accordingly, the price of 10 gram gold shot up to Rs53,155.
According to analysts, the rapid increase in the dollar is owing the government's decision to approach the International Monetary Fund (IMF) to deal with the prevalent financial crisis.
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.”
Pakistan is likely to request the IMF to provide it $6 to $7 billion.
Sources within the Ministry of Finance informed Geo News 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.
On Monday, the stock market continued on its downward spiral 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.