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Pakistan's New Prime Minister Rules Out Devaluation

  • Currency devaluation not an option, Abbasi says in interview
  • Pakistan’s current account deficit has more than doubled
Shahid Khaqan Abbasi.

Shahid Khaqan Abbasi.

Photographer: Asim Hafeez/Bloomberg
Updated on

Pakistan’s new Prime Minister Shahid Khaqan Abbasi has his economic task cut out. Twin deficits are depleting the nation’s foreign-exchange reserves and constraining credit ratings, stoking speculation that he’ll opt to devalue the rupee to spur inflows.

That won’t happen, Abbasi said in an interview late Saturday. With fresh elections due next year, the government is instead looking to curb imports through tariffs and help boost local production.