KARACHI: Pakistan’s national currency closed the weekend trading session on a historical note, hitting an all-time low of Rs301 against the US dollar in the interbank market, with the rising demand for greenback among the business community for import payments building pressure on the local currency.
The Pakistani rupee lost its value against the US dollar by Rs3.87 or 1.3 percent during this week, according to the central bank data.
“The pressure on rupee continues to build as demand for dollar to pay letters of credit (LCs) remains on the higher side after the government removed restrictions on imports,” Zafar Sultan Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), told Arab News.
He maintained the current situation was encouraging grey- and black-market trading while urging people to avoid unnecessary buying of dollars “in the larger interest of the country.”
Paracha said the currency was also under pressure due to fears of further energy rate hikes by the current caretaker administration of the country which is thought to have very little political stake in the system.
The Pakistani rupee has lost its valued by Rs12.51 or 4.3 percent in the interbank market since the departure of the previous coalition government of former prime minister Shehbaz Sharif earlier this month.
The country’s stock market closed marginally lower on Friday due to concerns around weaker national currency.
The benchmark KSE100 index shed 79 points to close at 47,671 level at the end of the week on Friday.
“The Pakistani stocks closed lower amid investor concern for weak rupee and dismal economic outlook,” Ahsan Mehanti, CEO of Arif Habib Corporation, said.
“Falling exports and inflation worries amid surging power tariff and falling rupee played a catalyst role in the bearish close,” he added.
Pakistani rupee hits historic low of Rs301 as market demand for US dollar surges
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Pakistani rupee hits historic low of Rs301 as market demand for US dollar surges
- The rupee has lost its value by 4.3 percent since the caretaker government assumed political power in Pakistan
- Unstable national currency has also been impacting equity market trade according to independent experts
Pakistan to maintain hard line on Afghanistan after strikes as Taliban vows military response
- Islamabad blames Afghanistan’s ‘guerrilla mindset’ for escalating tensions between the two countries
- Afghan Taliban spokesperson denies militant presence in his country, accuses Pakistan of hitting civilians
ISLAMABAD: Pakistan vowed on Wednesday to continue its current policy toward Afghanistan unless the Taliban leadership abandons its “guerrilla mindset,” days after Islamabad carried out airstrikes inside Afghan territory, sharply escalating tensions between the two neighbors once again.
Pakistan conducted intelligence-based strikes overnight into Sunday in Afghanistan’s eastern Nangarhar and southeastern Paktika provinces, saying it had targeted camps of the banned Tehreek-e-Taliban Pakistan (TTP), its affiliates and Daesh-linked fighters.
Islamabad has long accused Kabul of allowing militant groups to use Afghan soil to launch attacks on Pakistani civilians and security forces, a charge the Taliban deny. The two sides also clashed in October last year, leading Pakistan to close key border crossings for bilateral and transit trade.
State Minister for Interior Talal Chaudhry told Geo News that Pakistan had attempted dialogue but would now persist with practical measures if the Taliban failed to change course.
“They call themselves a state, but they have not yet emerged from their guerrilla mindset,” he said.
“Now, with the practical steps we are taking, we want to change their behavior and see them in the form of a state,” he added.
Pakistan blamed a string of recent suicide bombings in Islamabad, Bajaur and Bannu on militants operating from Afghan territory before launching the latest strikes.
Chaudhry said Afghanistan had been acting like “an irresponsible neighbor,” warning that his country’s current approach would continue if attacks inside Pakistan persisted.
“This war will be won, and all this will end,” he said. “If it is not resolved the straight way, then it will be completely ended by a hard-line approach.”
Meanwhile, Kabul has condemned the airstrikes as violations of its sovereignty and said civilians were killed.
In an interview with Al Arabiya, Taliban government spokesman Zabihullah Mujahid also pledged to respond militarily.
“It would be a military response, but its details are confidential and I cannot explain further,” he said.
Mujahid rejected Pakistan’s allegations that TTP or Daesh militants operate from Afghan soil, saying security problems inside Pakistan were domestic in nature.
“Afghan soil is not allowed to be used against anyone,” he said, adding that Kabul had carried out extensive operations against Daesh and eliminated its presence in Afghanistan.
The 2,600-kilometer border between the two countries remains a vital trade and transit route, but crossings have faced repeated closures amid rising tensions, disrupting commerce and humanitarian movement.
Several regional countries, including Saudi Arabia, Türkiye and Qatar, have sought to mediate between the two countries, though their military exchanges risk further destabilizing their ties.
