Pakistan rupee ends at record closing low of 305.5 per dollar

A dealer counts US dollars at a money exchange market in Karachi on March 2, 2023. (AFP/File)
Short Url
Updated 31 August 2023
Follow

Pakistan rupee ends at record closing low of 305.5 per dollar

  • Rupee lost 0.4 percent as Pakistan eased import restrictions to abide International Monetary Fund conditions
  • Since induction of a caretaker administration in Pakistan ahead of elections, the rupee has shed 4.6 percent

KARACHI: Pakistan’s rupee fell to an eighth consecutive record closing low on Thursday, dropping to 305.5 per US dollar, central bank data showed.

The rupee lost 0.4 percent as Pakistan eased import restrictions to abide by conditions set under a $3 billion bailout package from the International Monetary Fund (IMF) and on political instability.

Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves.

A caretaker administration is currently governing Pakistan, tasked with steering the country through to a national election that is due to take place by November. It is also grappling with acute political tension, as well as historically high inflation and interest rates.

Since the induction of the caretaker administration the rupee has shed 4.6 percent. Through August, the rupee lost 6.2 percent.

At least one review under the $3 billion IMF Standby Agreement (SBA) will be with the caretaker government.

Pakistan’s sovereign dollar bonds slid on Thursday amid a broader emerging market debt rout. The 2031 maturity fell the most, by 2.5 cents, but several were down by 2 cents or more, according to Tradeweb data.


Islamabad questions growing India, Afghanistan engagement amid militancy surge in Pakistan 

Updated 5 sec ago
Follow

Islamabad questions growing India, Afghanistan engagement amid militancy surge in Pakistan 

  • Afghan ministers visited India in October and December last year amid Kabul’s strained ties with Islamabad
  • Islamabad accuses India of supporting militant groups based in Afghanistan who launch attacks against Pakistan

ISLAMABAD: Information Minister Attaullah Tarar on Monday questioned growing engagement between officials from India and Afghanistan, vowing Islamabad would eliminate “terrorism” from the country as it reels from a surge in militancy. 

Afghan Foreign Minister Amir Khan Muttaqi arrived in New Delhi in October last year, marking the first official visit by a Taliban leader to the country since 2021 where he was accorded a warm welcome. In December 2025, Afghanistan’s Public Health Minister Noor Jalal Jalali arrived in India. 

These visits took place amid growing tensions between Pakistan and Afghanistan. Islamabad frequently accuses India of supporting militant groups who carry out attacks in Pakistan, especially in the country’s northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. Pakistan also alleges these militant groups use Afghan territory to launch attacks against it. New Delhi and Kabul both deny Pakistan’s allegations. 

“You can see the Afghan government [officials] every other day go to India and hold negotiations there,” Tarar said during a news conference. “What negotiations are these? What trade do you have with them? What areas of mutual cooperation are there that require such extensive consultations?” 

The minister said the militants who were carrying out attacks in Pakistan want to destabilize the country, accusing them of following a “foreign-funded agenda.”

“What Islam is this, that you take funds from India and conduct blasts here,” he questioned. 

Tarar said the nation remains united in defeating “terrorism,” adding that the government will battle militancy in all its forms. 

“Not only will we counter their narrative, we will also ensure that every Pakistani citizen feels safe,” he added. 

The development takes place as Pakistan grapples with surging militancy. Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry told reporters during a media briefing last week that the country witnessed 5,397 militant incidents in 2025. 

KP province accounted for 3,811 attacks while 1,557 incidents were reported in Balochistan, he said. The military spokesperson said security forces carried out 75,175 intelligence-based operations (IBOs) in the country last year, killing 2,597 militants. 

“The past year was a landmark and consequential one in the war against terrorism,” he said.