Despite a modest increase the day before, the Pakistan Stock Exchange (PSX) on Friday continued to decline as the government’s growth projections were damaged by the country’s severe floods.
Details indicate that the PSX overcame the 42,000 barrier today after the KSE-100 index increased by 231 points and traded at 42,056 points.
Damage to infrastructure and crops has also reduced export options for the nation, which is desperately trying to reduce its trade imbalance. Devastating floods have had an impact on business opportunities everywhere.
Despite an IMF loan tranche of US$1.16 million being released, the rupee is likewise unable to advance. For the sixth session in a row, the US dollar continued to depreciate against the Pakistani rupee in the interbank market today.
The Pakistani rupee, which gained 1.58 during intraday trade, was available at Rs227.40 per dollar, according to the Forex Association of Pakistan (FAP).
The forex organization noted that the exchange rate for the dollar in the open market was between Rs234 and Rs236.
Imports of basic food commodities including tomatoes and onions have continued pressure on the greenback after the country faced a shortage following devastation of the crops during floods.
In addition, some groups have suggested that illegal US dollar transfers to the neighboring nation have kept the greenback under pressure even after the issuance of an IMF loan tranche.