ISLAMABAD: Pakistan’s national currency depreciated further against the US dollar on Wednesday, crossing Rs190 amid increasing demand for import payments coupled with growing economic and political uncertainty at home.
The country’s finance minister Miftah Ismail held meetings with International Monetary Fund (IMF) officials in April for the resumption of a $6 billion loan program to secure external financing.
However, the government has yet to decide if it wants to meet all the IMF conditions, including the reversal of fuel subsidies, to secure the next tranche of about $1 billion.
According to the State Bank of Pakistan (SBP), the rupee depreciated by 0.72 percent, or Rs1.36, in the inter-bank market on Wednesday, closing at Rs190.02 against the US dollar.
“Lack of clarity on IMF front and increasing demand for dollar for import payments amid dwindling forex reserves continue to exert pressure on Pakistani rupee,” Samiullah Tariq, research director at the Pakistan-Kuwait Investment Company, told Arab News on Tuesday.
Pakistan’s foreign exchange reserves declined to $10.499 billion due to external debt payments during the week ending on April 30, according to the central bank.
The country’s new administration has also sought financial assistance from friendly nations in recent weeks, though it has not managed to secure the required funding amid the prevailing economic situation.
