Falling foreign exchange reserves, widening trade deficit, current account deficit, and an alarming expansion in imports have made vulnerable the value of rupee against dollar and other major currencies.
Economy
Delay in the revival of IMF programme, lack of financial support from friendly countries, depleting foreign exchange reserves and expanding trade deficit are putting pressure on the value of domestic currency.
During a meeting with Planning Commission Deputy Chairman Dr Mohammad Jahanzeb Khan, Schafer appreciated the steps taken by the planning commission in various sectors, especially in agriculture and gender.
The return on saving accounts and certificates are linked with the central bank’s policy rates and are normally kept slightly higher to attract savings small savers without drastically affecting the government budget. The government had been increasing profits on savings schemes over the past few months after reaching a peak in December last year.
The consumer’s billing history shows that the current bill of Rs 20,000 is much higher than two months combined bill of the consumer.
IMF Resident Director in Islamabad Esther Perez Ruiz said that the IMF team is expected to hold discussion with Pakistani officials about seventh review in this month, but she neither indicated the date of talks nor the venue of meetings.
This avalanche of price increases has not only enveloped consumers but also individuals selling poultry.
About 25 representatives from Chinese IPPs complained about the buildup of their dues and warned that without upfront payments they would shut down within days. They said the authorities were pressuring them to maximise generation to meet peak summer needs, but “this is impossible for us in view of serious liquidity issues”.