No need of further rupee devaluation: Miftah Ismail

Remigio Civitarese
Aprile 22, 2018

Adviser to PM on finance says currency has found its equilibrium.

Pakistan delegation led by Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Miftah Ismail participated in the IMF, World Bank spring meetings 2018 and attended several bilateral meetings on the sidelines.

He also ruled out any possibility of further depreciation of the rupee against the USA dollar and said the rupee had to lose its value because of trade deficit.

However, with Dar gone and a widening trade deficit, Pakistan has twice let the rupee fall, cumulatively weakening the currency by over 9% against the United States dollar.

Concerns about critically low foreign exchange reserves - caused by a widening current account deficit - are also to likely figure prominently in Miftah's talks in Washington.

But Ismail was adamant the rupee has found it equilibrium.

He said now the exports had captured the upward trend as in just March, the exports were up 24 percent from a year ago. "I see good things happening right now and I do not see any further need of devaluation", Ismail said in an interview with Bloomberg on Saturday.

The Finance Adviser is now visiting Washington DC to attend the World Bank and International Monetary Fund (IMF) annual spring meetings.

"Our exports had been going down for the last three years and imports were going up way too fast; trade deficit was too high, therefore it was the right time to devalue our currency", he said. "Luckily, there hasn't been any (substantial pressure) on inflation and it has remained under 4%".

Highlighting the significance of the China Pakistan Economic Corridor (CPEC), the adviser said the project has proved vital in expediting economic growth.

He said Pakistan will address all reservations of global community regarding Pakistani anti-money laundering law or counter financing of terrorism laws.

To another query regarding Pakistan's inclusion in Financial Action Task Force (FATF) grey list, Ismail said "we have prepared an action reporting plan in this regard and we will share this plan with FATF on 25th of this month".

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