Experts say that PKR is expected to devalue further against the USD. PKR interbank exchange rate appreciated from 163.12 to 156.90 against the USD from July 3 to July 6, respectively.
PKR appreciated a little against the USD because Qatar had deposited $500 million in State Bank of Pakistan and IMF also released $1 billion after the meeting on July 3. Hence, increasing Pakistan’s foreign reserves.
Experts say that in the coming months PKR is expected to depreciate further as the dollars coming in the system are less than the dollars going out. This is due to many factors, including our trade deficit and the huge amount of loans that we have to pay back. Pakistan has already paid over $7 billion in debt servicing this year and further payments are due in the near future.
Pakistan also received a record of $20 billion through foreign remittances, but the PM said that there is still $10 billion worth of money laundering occurring which needs to be stopped.
While the privatization of many government-owned entities will bring revenues in the system, Pakistan will still have to improve the trade deficit situation, balance of payment situation, reduce money laundering and increase tax net to stabilize the currency in the long run.