Pakistani rupee hits historic low against US dollar
The US dollar reached an all-time high against the Pakistani rupee, soaring to Rs190.10 in the interbank market on May 11.
The rupee is under pressure due to rising demand for the greenback for import payments, falling foreign exchange reserves, and the lack of progress on the $6 billion International Monetary Fund (IMF) program.
Analysts say that lack of clarity on the IMF program amid dwindling forex reserves is one of the major causes that are exerting pressure on the Pakistani rupee.
Pakistan’s new government led by PMLN leader Prime Minister Shehbaz Sharif has so far failed to attain any new bailout package from friendly countries despite his visits to UAE and Saudi Arabia days after taking office.
“The PKR is under pressure due to paying higher oil Import bill and speculation awaiting the Saudi package”, Ahsan Mehanti, Director Arif Habib Group was quoted as saying by Mettis Global.
Pakistan’s foreign exchange reserves have also dwindled by $59 million to $10.499 billion in May 2022 due to external debt payments during the week ending on April 30, according to the State Bank of Pakistan (SBP).