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.
