ISLAMABAD: The Pakistani rupee continued to slump on Tuesday and hit another all-time low against the US dollar that closed at Rs202.83 in the interbank market, the Pakistani central bank said, amid increasing demand for import payments.
The Pakistan currency recovered some of the losses last week after hitting an all-low of Rs202.01 against the greenback on May 26.
On Tuesday, it lost 1.37 percent of its value in the interbank market, according to the Pakistani central bank.
Zafar Paracha, general secretary of Exchange Companies Association of Pakistan, attributed the rupee’s slide to the demand for greenback for import payments as well as speculation fueled by “irresponsible statements” of the political leadership of the country.
“Today, it was not a good day for Pakistan economically. Speculators have been active in the banking sector and they have increased the dollar byRs4-5 in one week,” Paracha said.
“I suggest dollar should be fixed at Rs190, because the free, open market is not suiting us at the moment.”
Pakistan is in dire need of external finances, hurt by high inflation, reserves declining to as low as less than two months’ of imports, and a fast-weakening currency.
The South Asian country has been in talks with the International Monetary Fund (IMF) for the completion of seventh review of the $6 billion loan program Islamabad secured in 2019.
A successful review of the program will see the disbursement of another around $1 billion to Pakistan and help unlock funding from multilateral donors.
Pakistan has so far received $3 billion under the Extended Fund Facility.
