Pakistan : Terrorist Wahabi Islamic Rep Pakistan 7

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[center][color="#006400"]Pakistani rupee at [size="6"]record low of 89.36 to dollar[/size][/color][/center]



KARACHI : The Pakistani rupee traded at a record low early on Wednesday weighed by import payments and a bleak outlook for the country’s economy.



“The rupee was traded at 89.36 (to the dollar) and so far there has been one (import) payment of about $40 million to $45 million,” said a bank dealer.



The rupee was trading at 89.22/27 to the dollar at 10:43 a.m. (0543 GMT), compared with Friday’s close of 88.96/89.00. It has lost about 4.2 percent this year. The previous low was 89.02 on Friday.



Dealers cited concerns about the weak outlook for Pakistan’s economy. The International Monetary Fund (IMF) forecasts economic growth for 2011/12 fiscal year at 3.5 percent, lower than the government’s target of 4.2 percent.



“The rupee has come under significant pressure so far (in July-Dec) on a widening trade deficit and large external debt payments,” said Sayem Ali, economist at Standard Chartered Ltd.



Pakistan’s current account deficit stood at $1.6 billion in July-Oct compared with $541 million in the same period a year earlier. Islamabad has to start repaying an $8 billion International Monetary Fund loan in early 2012. Without additional sources of revenue, its foreign exchange reserves will come under pressure, analysts say.



Foreign exchange reserves fell to $16.88 billion in the week ending Nov. 25. They hit a record $18.31 billion in the week ended July 30.



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