- The Commerce Minister said gasoline prices are likely to fall on October 1st.
- A fall in the value of the dollar will ease inflation, he said.
- The Sindh Governor said that addressing the problems of traders is the government’s top priority.
KARACHI: Sindh Governor Kamran Khan Tessori on Saturday claimed that the dollar rate will further fall in the market, adding that the dollar will depreciate to 250-255 rupees against the local unit in the coming days.
The previous day, the Pakistani rupee appreciated by 1.01 rupees against the US dollar in interbank transactions, ending at 291.76 rupees against the previous day’s closing price of 292.77 rupees, marking the 14th consecutive recovery. However, the buying and selling rate of the dollar in the open market was 292.1 rupees and 295 rupees, respectively, according to Pakistan Foreign Exchange Association.
The Pakistani rupee has rebounded significantly against the US dollar since the government launched a crackdown on currency smugglers, custodians and black market traders.
Addressing a joint press conference, the Sindh Governor, flanked by Interim Commerce Minister Gohar Ejaz, said the government was taking effective steps to address important issues.
He made the remarks after a meeting with a delegation from the business community in Karachi.
He asserted that the government is taking steps to provide cheap electricity and uninterrupted gas supply to industries and domestic consumers.
The governor said they also discussed the issue of illegal Afghan refugees.
“Addressing traders’ issues is the government’s top priority.” He said ministers would meet monthly with traders to address their issues.
Meanwhile, the caretaker commerce minister expected petrol prices to fall on October 1 due to the strong rupee.
Amid severe inflation, the caretaker government in September raised petrol prices by more than 26 rupees per liter and diesel prices by more than 17 rupees per liter in a biweekly review.
Ejaz blamed the recent spike in inflation on the flight of the dollar, adding that the value of the dollar continues to decline due to effective measures taken by the government.
“A decline in the value of the dollar will have an impact on current inflation.”
He said the value of the dollar has fallen in the interbank market and the open market, adding that this will provide a sense of security to the public.
Earlier today, Caretaker Information Minister Murtaza Solangi signaled that oil prices would be lowered in the next two-week review scheduled for September 30.
Speaking to reporters at the Karachi Press Club, the Information Minister responded to reports that the rupee has appreciated by 30 to 35 rupees against the dollar due to administrative measures taken by the caretaker government in the past few days.
He said the authorities are taking action against hoarders, currency smugglers and black marketers after the rupee fell to a historic low of 308 rupees in interbank trading earlier this month and crossed 330 rupees in the open market. He was referring to the crackdown on military support that began in 2007.
As a result of the crackdown, the rupee appreciated significantly, recovering to 291.76 rupees to the dollar in the interbank market, the highest level since September 5.
Since then, the currency has appreciated by 5% (Rs 15), supported by dollar inflows from exporters and remittances, as well as central bank measures to encourage legal channels of foreign exchange transactions.
“There is a good chance that oil prices will fall next year.” [fuel prices] announcement,” the minister said, adding that the caretaker government will not be involved in fuel prices as they are linked to international oil prices.
“[…] “People will see some benefit from the decline in the value of the dollar,” he said.