Interbank Mkt: Pakistan rupee drops 1% in interbank market as caretaker govt takes over

KARACHI: Pakistan’s rupee dropped 1% in the interbank market in the first trading session under a caretaker government, closing at 291.5 against the US dollar, according to central bank data.

The president dissolved parliament on outgoing PM Shehbaz Sharif’s advice on Wednesday, setting the stage for a national election amid political and economic crises.
The outgoing finance minister, Ishaq Dar, had strongly favoured intervention in currency markets. However, in his last stint in the role, Dar negotiated a $3 billion standby agreement with the International Monetary Fund (IMF), calling the country to commit fully to a market determined exchange rate, remove controls and eliminate multiple exchange rate practices in different markets.

On Monday, Anwaar-ul-Haq Kakar, a little-known politician who is believed to be close to the military, was sworn in as Pakistan’s caretaker PM. He will name a cabinet and head a government until a new administration is elected, and he will have extra powers to make policy decisions on economic matters.