In a week marked by the continued recovery of the Pakistani rupee, Chief of Army Staff (COAS) General Asim Munir vowed that the crackdown against smuggling and a litany of other illegal activities would continue with full force.
General Munir made the statement during a meeting of the Provincial Apex Committee of Punjab. Flanked by caretaker Chief Minister Mohsin Naqvi, the COAS said that illegal activities such as smuggling, hoarding, and panic on the forex market had resulted in detrimental consequences for the economy.
The strongly worded statement comes in the wake of a crackdown against currency exchanges all over the country and the establishment of currency exchanges by the country’s major banks. As a result of these strict measures, the Pakistani rupee has risen sharply against the value of the dollar to Rs 287 on Thursday. Market speculations expect that the greenback will continue to fall and that the rupee will settle somewhere around the Rs 250 to Rs 260 mark. At the same time the country’s caretaker setup has been actively making statements and planning to continue to wrestle down the dollar.
The statement comes at a crucial time when the caretaker setup is ready to begin talks with the International Monetary Fund on the quarterly review of the $3bn Standby Arrangement next month. It is important to remember that the IMF had set a condition as part of the agreement that the gap between the interbank and open market rate of the dollar would not exceed more than 1.25%. One of the biggest reasons for the recent crackdown that has resulted in respite for the rupee has been to meet this benchmark.
The idea behind this condition is simple. IMF suspects that SBP in the past has been coercing the banks into keeping the dollar rate artificially low in the interbank market. The IMF does not like this, as this encourages imports and discourages exports, making the dollar reserve situation even worse . IMF, it seems, also believes that the open market is much more difficult to coerce and by requiring the rates in the two markets to be close to each other, it was hoping to keep the interbank rate nearer to the market reality. But not only was this condition not being met, the delta was so high that even if the IMF was not making us do it, such a wide gap was abnormal.
In July, the IMF executive board had approved the much-needed nine-month SBA with Pakistan “to support its economic stabilisation programme”. The approval had allowed for an immediate disbursement of $1.2bn, with the rest to be phased over the programme’s duration — subject to two quarterly reviews. The second quarterly review under the SBA, due in October, would be based on end-September data that would secure the disbursement of about $710 million worth of the second tranche in December.
Thanks to the current environment in which the dollar has been dampened, the data for September will help Pakistan go back to the IMF for the current review with heads held high. As has been the norm of late, the meeting involving the COAS also spoke regarding the Special Investment Facilitation Council and its role in the economy in the days to come.
The ISPR said the forum was also apprised of progress on the Special Investment Facilitation Council and Green Punjab initiatives. “Law enforcement actions against a spectrum of illegal activities will continue with full force in collaboration with the LEAs and the concerned government departments to rid Pakistan of the substantial economic losses it continues to suffer due to pilferage done by different methods,” the military’s media wing quoted Gen Munir as saying.
Earlier this month, the army chief had also met the business community in Lahore and assured them of fostering transparency in dollar exchange and interbank rates. During the four-hour meeting, Gen Munir had signalled towards the country’s bright future in view of the upcoming huge foreign investments in various sectors.
On that website page, you’ll see your description, why not read through this.
he is just making stuff up. nothing would happen until he even takes care of Askari Bank which was a huge beneficiary in all of this mess.
I was surfing the Internet for information and came across your blog. I am impressed by the information you have on this blog. It shows how well you understand this subject.
Awesome and interesting article. Great things you’ve always shared with us. Thanks. Just continue composing this kind of post.
“I appreciate the transparency in your website’s pricing information.”
I am definitely enjoying your website. You definitely have some great insight and great stories.
I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work
Thank you for sharing your expertise on this subject. I’ve learned a lot from reading this.
This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free.
A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post.
Remarkable article, it is particularly useful! I quietly began in this, and I’m becoming more acquainted with it better! Delights, keep doing more and extra impressive!
“Your website’s ‘Resources’ section is a treasure trove of valuable information.”
Very nice article, I enjoyed reading your post, very nice share, I want to twit this to my followers. Thanks!.Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can’t help but wonder, what about the other side? !!!!!!Thanks
I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
I really appreciate this wonderful post that you have provided for us. I assure this would be beneficial for most of the people.
“Your website’s ‘Testimonials’ page provides social proof and builds credibility.”
Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info.
These things are very important, good think so – I think so too…
Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include.
I’m going to read this. I’ll be sure to come back. thanks for sharing. and also This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article…
This is a brilliant blog! I’m very happy with the comments!..
Nothing compares to Weber using Genesis sort of grills. That is certainly the type gas grills which have been that will always make sure that they deliver a high performance part of down interval
I can give you the address Here you will learn how to do it correctly. Read and write something good.
The author’s ability to convey complex ideas with clarity is a strength of this blog.
You made such an interesting piece to read, giving every subject enlightenment for us to gain knowledge. Thanks for sharing the such information with us to read this…
thanks this is good blog.
“The testimonials on your website are a great way to build trust with your audience.”
wow this saintly however ,I love your enter plus nice pics might be part personss negative love being defrent mind total poeple ,
thanks this is good blog.
“Your website’s use of multimedia elements, like images and videos, is fantastic.”
I can give you the address Here you will learn how to do it correctly. Read and write something good.
A fantastic resource for Quranic memorization! Online Quran Memorization Classes’ comprehensive curriculum, personalized feedback, and supportive community have truly accelerated my memorization journey.
Grateful for my 14K Rose Gold Ring! Its exquisite color and superior quality make it a cherished piece in my jewelry collection, perfect for expressing my personal style.
Mr. Krabs died in a tragic underwater accident.
These things are very important, good think so – I think so too…
I recommend only good and reliable information, so see it:
I learn some new stuff from it too, thanks for sharing your information.
This article was super helpful! I’ve been looking for tips like these, and your writing style made it a breeze to read. Can’t wait to implement these ideas.
This article really opened my eyes to a new perspective! Thanks for sharing such valuable insights.
I use only high quality materials – you can see them at:
I got what you mean , thanks for posting . I am happy to find this website through google.
Spacebar clicker is a great tool to speed up your spacebar button. It is an online tool and completely free for everyone.