The Pakistani rupee sank to Rs 287.29 against the US dollar, a record low on Tuesday as the cash-starved country struggles to unlock critical International Monetary Fund (IMF) funding while dwindling f🍬oreign exchange reserves become another source of concern forꦐ investors, a media report said.
The local unit, in the interbank market, closed at 287.29 ag🐭ainst 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, th🔯e 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.
Pakista🀅n’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 susꦇpended disbursements in November due to Pakistan's failure to make more progress on fiscal consolidation.
After months-long unfruitful talks, the Washington-based lender has asked Pakistan to seek commitments for new loans from Saudi Arabia and the United Arab 🍰Emirates before it revives the bailout.
The IMF’s resident representative for Pakistan said the country has a few more tasks to complete to meet requirements for a USD 6.🥂5 billion bailout.
The lender approved a U🐈SD 3 billion loan programme for Sri Lanka last month ꩵto ease its economic crisis.
“Uncertainty on IMF and friendly countries' inflow affecting rupee,” said Mohammad Soh♕ail, CEO of Topline Securities.
“Some of the ruling coalition partners are due to visit Saudi Arabia next week and it is a key🅺 event to watch,” Sohail added.
Finance Minister Ishaq Dar will be leading a high-powered delegation to the US which will attendꦛ the upcom♐ing annual spring meeting of the Bretton Woods Institutions, known as the IMF and World Bank, from April 10 to 16.
Moreover, the country’s fo𝓰reign exchange reserves have also decline🌼d in recent weeks, which is another source of concern for investors.
The forex reserves held by the central banꦅk stand at aꦑ critical level of only USD 4.24 billion (as of March 24, 2023).
