Pakistan Economic Crisis: The Pakistani rupee sank to Rs 287.29 against the US dollar, a record low as the cash-strapped country still struggles to get International Monetary Fund (IMF) funding. This comes at a time when foreign reserve exchange also stands at a critical level of only USD 4.24 billion (as of March 24, 2023).
The local unit, in the interbank market, closed at 287.29 against the US dollar, 0.78 per cent or Rs 2.25, down from Monday’s close of 285.04, Geo News reported.
Last month, the rupee hit a record low, closing at Rs 285.09 per US dollar on March 2, the data released by the State Bank of Pakistan (SBP) showed.
According to financial experts, Financial importers have resumed the panic buying of US dollars, while the supply of foreign currency remained low in the interbank market.
Pakistan’s loan programme is yet to materialise months after it raised taxes and energy prices and allowed the currency to depreciate to meet IMF’s conditions. The nation has missed multiple deadlines to resume its bailout.
The cash-strapped nation secured a USD 6 billion IMF bailout in 2019. It was topped up with another USD 1 billion last year to help the country following devastating floods, but the IMF then suspended disbursements in November due to Pakistan’s failure to make more progress on fiscal consolidation.
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