ISLAMABAD: Sudden devaluation of Pak rupee against the US dollar recorded in interbank trading on Friday morning as rupee hit an all-time high of Rs144.
Rupee devaluation is following the same pattern as reported by Customs Today in July 2018 that the Pak rupee could touch the lowest value of 153 against dollar in the medium term due to illegal transfers up to $9 billion to other countries against payments for millions of containers which cleared through misuse of the customs green channel.
For further details: http://www.customstoday.com.pk/pak-rupee-may-tumble-to-153-vs-usd-due-to-9b-bleeding-in-customs-green-channel/
Sources revealed that this trend shows that it has started from 107 and touched 129 mark in a short period of few months and the same technical trend shows it could even touch the lowest mark of 153 vs US dollar in medium term.
Only July 16, the rupee plunged to a record low of Rs129 against the dollar in the inter-bank, due to Rs 1000 billion losses of green channel illegal clearances at Karachi ports which caused burgeoning trade and current account deficit alongside deteriorating foreign currency reserves. Foreign exchange flight continued through illegal channels for smuggling banned goods into the country even after taking of notice by the Chief Justice Saqib Nisar against green channel misuse.
Since December last year, the currency has cumulatively depreciated by 36% and had closed trading at Rs133.99 on Thursday in the inter-bank market. But this morning, the greenback hit all time high of Rs 144 against dollar.
This marks the sixth time since last December, that the central bank has allowed the rupee to depreciate against the greenback as inflationary pressure, rising fiscal and current account deficits alongside stagnant exports compelled it to take this move.
It is worthy to mention here that mobiles, electronics, liquor, cigarettes, betel nuts, explosive chemicals, etc continue to pour into the country through the green channel. FBR has also admitted that 10 million containers have been cleared in Green Channel without any examination. In fact, not even scanning of these containers is done by customs.
Sources said this led to foreign reserves shortage as FBR allows our nation to bleed out approximately USD 9 billion in lieu of payments abroad for the contraband or high-value goods illegally cleared under the garb of lower valued goods in the green channel. Green channel operators used to transfer billions of dollars to other countries through illegal means. Customs collected approximately Rs 610 billion, but it lost Rs 1000 billion due to green channel misuse. The USD 9 billion loss through customs green channel mega scam could be added to country’s reserves if action is taken against corrupt officials of customs & FBR.
Importers appeal to the Finance Minister Asad Umar to take urgent action on customs green channel illegal clearances so as to halt the $9 billion bleeding of the foreign exchange and avoid Pak rupee from further plunge. It is already part of the government’s top agenda to eradicate the menace of corruption, smuggling, money laundering and black economy.