State Bank of Pakistan (SBP) Governor Dr Ishrat Husain on Thursday said that with the issuance of bonds and disbursements from the World Bank and the Asian Development Bank (ADB) next month the pressure on rupee would definitely be released.
"When Pakistan will issue bonds and inflow will increase, pressure on rupee will release as it is matter of timing," he said, while talking to reporters after the meeting of industrial strategy group here on Thursday.
Asked if rupee will regain or not, he said, it depends on supply and demand because neither the State Bank nor any other commercial bank determines the currency rate.
He said there was minimal capital flight because open market is following the interbank market. Last year, $25 billion came in the banks and any person who maintained his account in dollars and now purchasing apartments in Dubai that was his prerogative.
"This kind of thinking disturbs sentiments and speculators take advantage of this situation," he said.
Ishrat said the government has to fight with inflation, which according to him was 9 percent in September. He, however, said the present percentage would be judged after receiving figures of October.
Asked whether inflation would reduce in the days to come, the SBP governor said that he did not believe in hypothesis because the central bank acts on solid information and data.
To a question, he said that there was 22 percent growth in investment. Cement and fertiliser sectors were now opening their Letters of Credit (LCs), while textile sector intends to enhance LC to import machinery and raw material.
To another question, he said that the currency note of Rs 5,000 has been issued to facilitate big transactions. He was of the view that its value was less than $100 or 100 euros.
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