KARACHI – As the political situation continues to deteriorate in Pakistan, Pakistani rupee on Thursday surpassed all records, selling at above Rs189 against dollar in the interbank market.
The rupee continues the downslide that has seen it lose more than 10% since March 4, when the political crisis started in the country.
The local currency closed at Rs188.18 in the interbank market, down Rs2.05, or 1.09%, from Wednesday’s close of Rs186.13.
The Pakistani rupee has continued a non-stop downward streak for the 17th successive business day, except March 24 when it closed flat compared to the previous day’s closing, as investors worried about the political situation and economy, adding pressure on the central bank to rescue the falling currency. Former finance minister Dr Hafiz Pasha told a news channel that the Pakistan currency was under double pressure — economic and political.
He said, “Uncertain political situation, rising current account deficit and depleting foreign exchange reserves are the prime reasons behind the free fall of the rupee against the greenback,” he said, mentioning that suspension of the International Monetary Fund (IMF) programme has also raised concerns among investors.
The rupee has maintained a downward trend for the past 11 months. It has lost 23.58% (or Rs35.91) to date, compared to the record high of Rs152.27 recorded in May 2021.
With a fresh decline of 1.09%, the Pakistani rupee has depreciated by 19.44% (or Rs30.64) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
