The US dollar ascended to a record high against the Pakistani rupee on Thursday, crossing the barrier of Rs300 to the greenback during morning trade in the interbank market. The greenback was changing hands in the interbank market at Rs300.4 at 11:15am, according to the Forex Association of Pakistan. In the open market, the dollar was trading at Rs314. Yesterday, the dollar closed at Rs299.64, according to daily data released by the State Bank of Pakistan. As the dollar continued its upward march, analysts called for a “sound strategy” from the government to curtail the black market. “The government and all stakeholders need to implement a sound strategy to eliminate the black market,” said Saad bin Naseer, director of financial data and analytics portal Mettis Global.

 Naseer stated that it is very difficult to find the dollar in the interbank market however it was readily available in the open market at a “black [market] price”. He added that the central bank’s policy to keep the interest rate at 23pc was “not helpful as individuals find it more lucrative to invest in the foreign [currency] market”. Forex Association of Pakistan Chairperson Malik Bostan warned against hoarding dollars in the hope that its price will increase further. “Due to the increase in the dollar in the [inter]bank market, common people are also unnecessarily buying dollars in the hope that its price will increase further,” he said. He added that the lifting of the bans on imports due to International Monetary Fund (IMF) requirements has added more pressure on the PKR.

 
Credit: Independent News Pakistan (INP)