Pakistani rupee hits new all-time low amid political turmoil, high global commodity prices

A man talks on the phone in front of a poster displaying US dollars at the currency exchange place in Lahore, Pakistan on May 16, 2019. (AFP/File)
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Updated 01 April 2022
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Pakistani rupee hits new all-time low amid political turmoil, high global commodity prices

  • Pakistan’s national currency has devalued by more than 16.6% during this fiscal year
  • Inflation in Pakistan increased by 12.7% in March, compared to 12.2% rise in February

KARACHI: Pakistan’s national currency on Friday closed the weekend trading session at a historic low of Rs184.09 against the US dollar, traders and analysts said, amid political turmoil, high global commodity prices and depleting foreign exchange reserves. 

Pakistan’s prime minister, Imran Khan, is facing mounting pressure from his political rivals to step down after the opposition alliance tabled a no-confidence motion against him in the country’s parliament late last month. 

Khan, who is facing tough opposition and has been abandoned by his coalition partners, remains defiant and has refused to resign. The crucial vote is expected to take place on Sunday.  

The Pakistani currency has lost its value by 4.2 percent or Rs7.6 against the greenback since January, while it has depreciated by more than 16.6 percent or Rs26.22 during this fiscal year, according to the Pakistani central bank's data.  

“Pakistan is at the crossroads experiencing deep-rooted political challenges due to no-confidence motion and external shocks amid high oil prices, increased economic vulnerability and flared risks for political and economic stability,” Adil Jilani, the head of Trust Securities and Brokerage's economic division, told Arab News. 

“This has deteriorated external account and Pakistani rupee that hit an all-time low to Rs184.09 against US dollar, dropping by 3.77 percent since March 1.” 

The current political turmoil has only spurred the pace of the Pakistani currency’s losing streak, which was already battling high import bills, mainly due to rising global commodities and declining foreign exchange reserves.   

Analysts said the depreciation of rupee was resulting in higher inflation in the country.   

“The rising dollar continues to contribute to the inflationary buildup in Pakistan,” said Abdul Azeem, the research head at the Spectrum Securities brokerage house. 

Inflation in Pakistan increased by 12.7 percent on a year-on-year basis in March as compared to an increase of 12.2 percent in February. On a month-on-month basis, it increased by 0.8 percent in March, compared to a rise of 1.2 percent in February, according to the data released by the Pakistan Bureau of Statistics on Friday.  

Analysts believe the Pakistani currency will remain under pressure, primarily due to the external balance-of-payment situation.   

“The rupee will remain under pressure due to current external payment situation and expanding current account deficit, as the country is facing inflow issues amid declining forex reserves,” Azeem said. 

Pakistan’s foreign currency reserves have declined by $2.91 billion to $12 billion due to repayment of external debts, including a major syndicated loan facility from China, according to the Pakistani central bank, which says the rollover of the syndicated facility was being processed.


Pakistan rejects India’s ‘irresponsible assertions’ after FM Jaishankar’s ‘bad neighbors’ remarks

Updated 03 January 2026
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Pakistan rejects India’s ‘irresponsible assertions’ after FM Jaishankar’s ‘bad neighbors’ remarks

  • Indian FM Jaishankar accused Pakistan of fomenting militancy, backed New Delhi’s decision to put Indus Waters Treaty in abeyance
  • Islamabad calls the remarks an attempt to deflect attention from India’s ‘troubling record as a neighbor,’ vows to safeguard rights

ISLAMABAD: Pakistan on Saturday rejected “irresponsible assertions” made by Indian External Affairs Minister S. Jaishankar after his remarks about “bad neighbors” and the 1960 Indus Waters Treaty (IWT) between the two countries.

Jaishankar mentioned about “bad neighbors” at an event in Madras on Friday and said that New Delhi had a right to defend itself. “When you have bad neighbors... if you look to the one to the West, if a country decides that they will deliberately, persistently, unrepentantly continue with terrorism, we have a right to defend our people,” he was quoted as saying by The Hindu newspaper.

The remarks came months after New Delhi blamed Pakistan for a militant attack in Indian-administered Kashmir and conducted missile strikes inside Pakistan. Islamabad, which denied involvement in the Kashmir attack, responded to the strikes, leading to a four-day military conflict that saw the use of armed drones, fighter jets and artillery between the neighbors in May.

In a statement, Pakistani foreign office spokesman Tahir Andrabi said Islamabad firmly rejects the irresponsible assertions made by the Indian external affairs minister, describing the remarks as an attempt to deflect attention from India’s own “troubling record as a neighbor that promotes terrorism and contributes to regional instability.”

“India’s documented involvement in promoting terrorist activities in the region, particularly in Pakistan, is well known. The case of Commander Kulbhushan Jadhav remains a stark example of organized, state-sponsored terrorism directed against Pakistan,” he said.

“Equally concerning are recurring instances of extraterritorial killings, sabotage through proxies, and covert support to terrorist networks.”

Jadhav, an Indian navy officer who Islamabad said had been working with Indian spy agency, RAW, when Pakistani agencies arrested him in Balochistan in 2016. He was later sentenced to death by a Pakistani military court for alleged espionage. India disputes the conviction and has challenged it at the International Court of Justice.

Pakistan and India routinely accuse each other of supporting militant groups waging attacks against the other. The two countries have fought multiple wars, including two of them over the disputed region of Kashmir, since their independence from British rule in 1947. Both rule the region in part but claim it in full.

Jaishankar also spoke on Friday about the IWT that divides control of the Indus basin rivers between the neighbors and ensures water for 80 percent of Pakistani farms. India announced in April, following the Kashmir attack, that it was putting the 1960 World Bank-mediated treaty in abeyance.

“Many years ago, we agreed to a water-sharing arrangement — the belief was it was gesture of goodwill — because of good neighborliness we were doing it … but if you have decades of terrorism, there is no good neighborliness and you don’t get the benefit of good neighborliness,” Jaishankar was quoted as saying.

Pakistan foreign office spokesman Andrabi said the IWT is an international agreement concluded in good faith and at a considerable cost.

“Any unilateral violation of the Treaty by India would undermine regional stability and call into question its credibility as a state that claims to respect international legal obligations,” he said.

“Pakistan will take all necessary measures to safeguard its legitimate rights under the Treaty.”