The Pakistani rupee hit an all-time low on Tuesday against the US dollar, reaching Rs222 in the interbank market despite an announcement by the International Monetary Fund (IMF) regarding the resumption of the multi-billion-dollar loan programme.
The local currency continued its downward trend today and depreciated further by Rs6.90 against the greenback. The rupee had nosedived Rs4.25, or 1.97%, against the US dollar in the interbank market on Monday.
Experts are of the view that the dollar maintains its upward trajectory owing to the political uncertainty triggered by the thumping defeat of the ruling PML-N at the hands of PTI in the Punjab by-elections. Analysts believe, however, that the domestic political and economic situation are not the only factors at play.
“The dollar is getting stronger in the global market almost against all the world currencies and the Pakistani Rupee is not exception,” said Alpha Beta Core CEO Khurram Schezad.
Speaking of Pakistan’s financial situation, Schezad said that the country’s external account issues “are not settled as yet, the IMF (International Monetary Fund) is yet to be on board, and the flows are yet to materialise”.
“Global rating agencies have put a negative outlook on the economy, so that is an additional burden that is weighing on the financial markets in general and foreign exchange market in particular,” he added.
Meanwhile the PTI Chairman Imran Khan slammed the government by saying that that the economic meltdown shows the Sharifs never had any expertise in running the economy or administration and their only expertise is looting, money laundering and getting NROs.
“When the US regime conspiracy’s VoNC was tabled $ was at Rs 178. Today it is Rs 224 & in freefall despite IMF agreement,” he tweeted.