Rupee depreciates by 91 paisas on import payment demand

KARACHI: The Pak Rupee fell by 91 paisas against dollar on Tuesday owing to rise in demand for import payment demand.

The rupee ended Rs167.90 to the dollar from previous day’s closing of Rs166.99 in interbank foreign exchange market.

Currency dealers said that the rise in demand for import payment, especially related to the month of Ramazan, had deteriorated the rupee value.

They further said that the expenses related to Hajj also increased the demand for dollars.

The dealers said that the rupee however likely to gain in future owing to lower import payment demand after decline in international oil prices.

The import bill of the country has declined by 21 percent in March 2020 over the previous month owing to lockdown to contain coronavirus pandemic.

The import bill was at $3.3 billion in March 2020 as compared with $4.185 billion in February 2020, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

Similarly, the pandemic also adversely affected the country’s exports. The exports fell by 15.56 percent to $1.8 billion in March 2020 as compared with $2.14 billion in February 2020.

The total import bill during July – March 2019/2020 fell by 14.42 percent to $38.81 billion as compared with $40.68 billion in the corresponding period of the last fiscal year.

However, the exports registered increase of 2.23 percent during first nine months of current fiscal year to $17.45 billion as compared with $17 billion in the corresponding months of the last fiscal year.

The trade deficit during first nine months contracted by 26.45 percent to $17.36 billion as compared with the deficit of $23.61 billion in the corresponding period of the last fiscal year.

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