ISLAMABAD: The Pakistani rupee plunged to another all-time low of Rs 170.48 against the United States dollar on Wednesday, mainly due to concerns that a US Senate bill seeking sanctions on the Afghan Taliban could be extended to Pakistan, dealers and analysts said.
The rupee lost 51 paisas, or 30 percent percent of its value, against the greenback as the demand for the dollar continued to build pressure, according to the central bank.
The rupee was trading at Rs 172.50 for selling and Rs 171.50 for buying in the open market on Wednesday, according to the Exchange Companies Association of Pakistan.
“The plunge appeared to be related to the US Senate bill seeking to impose sanctions on the Afghan Taliban and which could extend to Pakistan,” Dawn newspaper reported.
The bill, backed by 22 senators, also seeks to investigate Pakistan’s support for the Taliban over the past 20 years.
It is not clear what likelihood the US bill has of becoming law.
The dollar hit a high of Rs168.43 in August last year. Then it started declining and reached Rs151.83 on May 14, 2021. However, the greenback started rising once again and has appreciated by 6.6 percent and 9.9 percent since June and May 14, 2021, respectively.
The State Bank of Pakistan had indicated earlier that the dollar could appreciate during the current financial year due to an expected higher current account deficit.
Pakistani rupee hits record low on concern about US sanctions
https://arab.news/nqyfw
Pakistani rupee hits record low on concern about US sanctions
- Pakistani currency plunges to another all-time low at Rs 170.48 against the US dollar
- Dip due to concerns US sanctions on the Afghan Taliban could be extended to Pakistan
EU, Pakistan sign €60 million loan agreement for clean drinking water in Karachi
- Project will finance rehabilitation, construction of water treatment facilities in Karachi city, says European Investment Bank
- As per a report in 2023, 90 percent of water samples collected from various places in city was deemed unfit for drinking
ISLAMABAD: The European Investment Bank (EIB) and Pakistan’s government on Wednesday signed a €60 million loan agreement, the first between the two sides in a decade, to support the delivery of clean drinking water in Karachi, the EU said in a statement.
The Karachi Water Infrastructure Framework, approved in August this year by the EIB, will finance the rehabilitation and construction of water treatment facilities in Pakistan’s most populous city of Karachi to increase safe water supply and improve water security.
The agreement was signed between the two sides at the sidelines of the 15th Pak-EU Joint Commission in Brussels, state broadcaster Radio Pakistan reported.
“Today, the @EIB signed its first loan agreement with Pakistan in a decade: a €60 million loan supporting the delivery of clean drinking water for #Karachi,” the EU said on social media platform X.
Radio Pakistan said the agreement reflects Pakistan’s commitment to modernize essential urban services and promote climate-resilient infrastructure.
“The declaration demonstrates the continued momentum in Pakistan-EU cooperation and highlights shared priorities in sustainable development, public service delivery, and climate and environmental resilience,” it said.
Karachi has a chronic clean drinking water problem. As per a Karachi Water and Sewerage Corporation (KWSC) study conducted in 2023, 90 percent of water from samples collected from various places in the city was deemed unsafe for drinking purposes, contaminated with E. coli, coliform bacteria, and other harmful pathogens.
The problem has forced most residents of the city to get their water through drilled motor-operated wells (known as ‘bores’), even as groundwater in the coastal city tends to be salty and unfit for human consumption.
Other options for residents include either buying unfiltered water from private water tanker operators, who fill up at a network of legal and illegal water hydrants across the city, or buying it from reverse osmosis plants that they visit to fill up bottles or have delivered to their homes.
The EU provides Pakistan about €100 million annually in grants for development and cooperation. This includes efforts to achieve green inclusive growth, increase education and employment skills, promote good governance, human rights, rule of law and ensure sustainable management of natural resources.
