On Thursday, Pakistan Rupee (PKR) falls its historically lowest against the US Dollar (USD). PKR fell as low as 255.43 rupees against 1 USD. The fall of Pakistan Rupee appears after an exchange cap was lifted as Islamabad campaigns to unlock a vital bailout from the IMF.
Pakistan is suffering a crisis and is in dire economic straits, with shriveling foreign exchange reserves remaining to pay for around three weeks of imports amid an infinite effort to service external debt.
As multiple sources say, In the official interbank Pakistani rupee fell 24.11 which falls as low as 255.43 rupees against the dollar.
According to Topline Securities, The depreciation of 9.6 percent in the Pakistani rupee is the second-biggest fall in a single session after July 2022.
While in July 2022, Pakistan’s struggling economy got weak as it faced many political chaoses and floods, and in resultant Pakistan’s economy faced 240 rupees lowest record.
In 2019, Imran Khan the former prime minister of Pakistan got a multi-billion dollar loan from the IMF to take out the country of an economic crisis. But the economy slipped and go backward when Imran Khan reneged on his own words to cut subsidies and market interventions.
Zafar Paracha, President of the Exchange Companies Association of Pakistan told AFP that “the cap was lifted after consultation with SBP”. While Sohail Mohammad, CEO of Topline Securities told AFP that “Inflation is about to rise”.
Pakistan’s forex reserves are short as an ascended demand for the dollar. Loaded with raw materials for industry foodstuffs and medical equipment thousands of shipping containers are being held at Karachi port because no bank wants to take guarantee of transaction importers’ dollars.
Pakistan suffered an electricity outage nationwide this week that is linked to the cost-cutting measure.
