In a recent statement, Sindh Governor Kamran Khan Tessori expressed optimism that the Pakistani Rupee (PKR) would continue to strengthen against the US dollar (USD) in the coming days. He claimed that the USD exchange rate would decline further, potentially reaching a range of Rs250 to Rs255 against the PKR. This statement came after the Pakistani Rupee had experienced a 14th consecutive recovery session, gaining Rs1.01 against the USD in interbank trading and closing at Rs291.76 compared to the previous day’s rate of Rs292.77.
According to the Forex Association of Pakistan, the purchasing and selling rates of the US Dollar against PKR in the open market were reported at Rs292.1 and Rs295, respectively. The recent appreciation of the PKR is attributed to a government crackdown on currency smuggling, hoarding, and black-market activities.
Governor Tessori and Caretaker Commerce Minister Gohar Ejaz addressed the press after a meeting with Karachi’s business community. They discussed various issues, including ensuring a stable supply of cheap electricity and uninterrupted gas for both industries and domestic consumers. Additionally, they mentioned addressing the issue of illegal Afghan refugees. They emphasized that addressing traders’ concerns is a top priority for the government.
Caretaker Commerce Minister Ejaz hoped that petrol prices would decrease on October 1 due to the PKR’s appreciation. He attributed the recent spike in inflation to the fluctuation of the USD. He noted that the government’s effective measures had contributed to the USD’s decline, which would positively impact inflation.
Interim Information Minister Murtaza Solangi also hinted at a potential reduction in petroleum prices during the next fortnight’s review, scheduled for September 30. He credited the administrative measures taken by the interim government, including the crackdown on hoarders and currency smugglers, for the recent strengthening of the PKR. This crackdown led to a significant recovery of the PKR, with the currency gaining 5% or Rs15 since its historic low earlier in the month.
Solangi clarified that the interim government does not control fuel prices, as they are linked to international oil rates. However, he expected that people would benefit from the PKR’s improved exchange rate, potentially resulting in lower fuel prices for consumers.