No devaluation, no compromise over the value of Rupee:

 

Finance minister has showed great deal of anguish over the issue of depreciation of rupee, as predicted by the eminent economic expert of the country. Considering the seriousness of the issue Dar has decided to comment on the issue public ally, this shows his great concern about the value of rupee. The recent deal with IMF is under great discussion by the economist and the recent shift about the deprecation in rupee they considered is the aftereffects of that deal. Ishaq Dar comments over the issue that “I am disappointed to come across comments and analysis by certain eminent economic experts that the rupee is bound to depreciate to 114 (to a dollar) as a result of some implicit understanding between the government of Pakistan and IMF.”

He totally reject the idea that Government and IMF has entered into an agreement to depreciate the value of rupee by 14%. He just throws out this notion and rejects this perception that the value of rupee will fall 14%within a year against dollar. If it is then it will have great impact on foreign exchange rates. He further embarks over the issue and tries to pacify the jolting markets and gave a very strong verdict and called the critics “Pseudo Intellectuals” He further said that there is no adjustment over the depreciation of rupee against dollar with IMF. “Let me assure you that there is neither any explicit nor implicit understanding with the IMF on the devaluation of rupee.”

His recent comments are the aftereffects of IMF report that is based on real effective exchange rate that is showing that rupee will be devalued by 7.7% during 2013-14. On the other hand, economist did great criticism over the IMF assessment; they claimed that the country economy will be cleaned out. If we see the interbank market situation the rupee was traded at the value of 105 against per dollar. But after report its value is more declined in the open market currency rates.The finance minister blamed the speculators who spread such news and thus causing to devaluing the rupee. He said “I am allergic to the words dictated devaluation.” To some extent he is right but IMF report should not be taken non-seriously, it is very serious issue. So is the responsibility to the economic analysts they need to work in a positive way, ishaq was much disappointed when he pointed economists. “I expect all professionals to be more responsible,” he further said that “pessimistic pseudo intellectuals will keep predicting that Pakistan will be a one-tranche country that will miss its key targets again.”

Finance minister was greatly agitated it seems, he said all economists should play a positive role and should work for the nation and on one policy not for their vested interest. He only means not to spread negativism among the people because it will be disastrous for the economy. He said that negotiation with IMF has been done without any compromise over the national interest. The IMF program has been settled on the standards of home-grown reform agenda. Dar is hopeful and optimistic about foreign exchange reserves of the country. He is expecting foreign exchange reserves will be improved up to $20 billion and public debt will be reduce to 57.5% of GDP that is currently 63.5%.