KARACHI – The Pakistani rupee on Wednesday dropped to another all-time of Rs226 against the US dollar after an international credit rating agency downgraded the outlook of the South Asian country to negative from stable.
Fitch Ratings, in its statement, said that the Revision of the outlook to negative reflects significant deterioration in Pakistan’s external liquidity position and financing conditions since early 2022.
“We assume IMF board approval of Pakistan’s new staff-level agreement with the IMF, but see considerable risks to its implementation and to continued access to financing after the programme’s expiry in June 2023 in a tough economic and political climate,” read the statement.
The Pakistani currency has lost its value by Rs4.01 against the greenback in the interbank market during today’s ongoing session to reach Rs226. It is the highest single-day depreciation in over three years.
The local currency has witnessed a decrease of Rs49.25 in its value since January and experts are of the view that the dollar could gain more till the end of today’s session.
Fitch downgrades Pakistan’s outlook to negative amid political, economic instability
