The Pakistani rupee fell to a record low of 287.29 against the US dollar on Tuesday. The cash-strapped country is struggling to get International Monetary Fund (IMF) funding, while depleting foreign exchange reserves have become another cause of concern for investors, a media report said.
In the interbank market, the local currency declined 0.78 per cent, or Rs 2.25, to close at 287.29 against the US dollar from Monday’s closing price of 285.04, Geo News reported.
According to data released by the State Bank of Pakistan (SBP), the rupee had hit a record low last month and had closed at Rs 285.09 per dollar on March 2.
According to financial experts, panic buying of the US dollar by financial importers has resumed, while the foreign exchange remained in short supply in the interbank market. Pakistan’s loan program has yet to materialize months after raising tax and energy rates and allowing the currency to devalue to meet IMF conditions.
Pakistan has missed the deadline several times to start its revival. The cash-strapped country had secured six billion from the IMF in 2019.
Another $1 billion was given last year to help the country after devastating floods, but the IMF suspended the disbursement in November because of Pakistan’s failure to make much progress on fiscal consolidation.
After months of fruitless talks, the Washington-based lending institution has asked Pakistan to seek commitments for new loans from Saudi Arabia and the United Arab Emirates.
