KARACHI (Reuters) - The Pakistani rupee fell to an all-time closing low on Monday following reported comment from the finance minister on a possible devaluation, dealers said, but the minister later said he had been misquoted. According to media reports, Finance Minister Shaukat Tarin said on the weekend the rupee might have to be devalued if inflation was not brought under control. But Tarin said after the end of the trading session that he had not said that. It has been completely misreported, Tarin told Reuters. I only said that the rupees value and exchange rate represent the terms of trade. So if you need a stable rupee, you will need to bring inflation lower, he said. Dealers said the clarification was likely to firm the rupee in the short-term but it would remain under pressure in the medium-term because of import payments. The rupee ended at 85.06/11 to the dollar, compared with Saturdays close of 84.90/96. Tarin said it was up to the central bank to decide on rupee policy. I have said that, as a matter of policy, we would like to have a real, effective exchange rate regime and that is the job of the State Bank of Pakistan, he said. Improved dollar supplies over the next few months should help support the currency, he said. There would be pretty good flows between now and June in the form of aid and the coalition support fund which will help boost reserves and ease pressure, he said, referring to U.S. aid for Pakistans efforts in the campaign against militancy. My own sense is it should be at least $3 billion plus until June, he said. The rupee, which hit an intraday record low of 85.15 this month, has weakened 1.02 percent this year after losing 6.17 percent in 2009. It lost 22.12 percent in 2008.