KARACHI – Pakistani rupee has nosedived to notch its biggest losing streak in almost two decades after foreign exchange giants removed a cap on the currency.
The currency of cash strapped nation tumbled to a record low of 271 against the greenback as the government relaxed its grip to win a crucial bailout package from IMF.
On Friday, the USD increased closed a historic week where it increased more than Rs30 in the interbank market.
Following the shocking devaluation of local currency, the external debt of the South Asian nation ballooned by Rs4 trillion, which is said to be nearly half of its fiscal budget of Rs9.5 trillion.
The massive devaluation occurred after Sharif led federal government removed an unofficial cap on the USD-PKR exchange rate to revive the stalled International Monetary Fund (IMF) loan program.
