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KARACHI: The US dollar soared to Rs134 in the interbank market on Tuesday.
The dollar was up by Rs9.75 as market opened today as it stood at Rs124.25 when the market closed on Monday.
The increase in dollar has led to uncertainty in the market.
According to analysts, the rapid increase in the dollar is owing the government’s decision to approach the International Monetary Fund (IMF) to deal with the prevalent financial crisis.
Finance Minister Asad Umar in a video message on Monday night said talks with the IMF will start “immediately” as Prime Minister Imran Khan has given a go-ahead to do so. He said the country is going through a tough time, which has been left behind by the previous government. “We have to find a way to get out of this difficult situation.”
Pakistan is likely to request the IMF to provide it $6 to $7 billion.
Sources within the Ministry of Finance informed media that the IMF would demand Pakistan to cut down its non-development expenses to bring down budget deficit. They said the world organisation will also ask Islamabad to expand tax net in the country.
On Monday, the stock market continued on its downward spiral as the KSE-100 decreased over 1,300 points during trading. KSE-100, the benchmark index of the Pakistan Stock Exchange dipped by 1,328.06 points or 3.39% to 37,898.29 points.