Some of the main factors for the rupee finding the floor in 2009 were the IMF program, slowdown in imports, S&P upgrade of the sovereign credit ratings, easing of inflationary pressures, return of portfolio investment to the equities market and record remittances.
Pakistan government plans to launch an investment instrument to raise as much as twenty billions rupees (US $250 million) before the end of this year. Experts believe that funds can be raised from the sale of national savings bonds even in current political situation.
Total addressable market for the sale of sovereign bond in Pakistan is estimated to be as high as Rs500 billion. By launching new investment instrument Government hopes to attract the excess money from the market that is not finding any productive outlet.
As of yesterday State Bank of Pakistan will not sell foreign exchange to banks for financing the crude oil imports. SBP had given banks a full working week to get prepared for securing funding from the international market.