ISLAMABAD: The Pakistani rupee on Thursday continued its downward trend against the US dollar, hitting a new low of 227 during the morning trade in the interbank market — despite the government’s assurances of market stability and incoming forex in the next few days.
A day earlier, the rupee nosedived by a whopping Rs2.99, or 1.30%, in a single day to hit an all-time low of Rs224.92, the data released by the State Bank of Pakistan (SBP) had shown.
Interbank closing #ExchangeRate for todayhttps://t.co/UvkvZjtlJ4 pic.twitter.com/KWQwiIEdpC
— SBP (@StateBank_Pak) July 21, 2022
Analysts attribute the fresh depreciation to political uncertainty arising out of the outcome of the Punjab by-elections.
In light of the deteriorating economic situation, Prime Minister Shehbaz Sharif had convened an emergency meeting with the country’s economic team and other high-ranking government officials.
The delayed revival of the International Monetary Fund’s (IMF) programme has also played a major part in the rupee’s free fall as despite striking a staff-level agreement with the lender, the loan will be disbursed only after the institution’s Executive Board gives its approval — which is expected in August.
Finance Minister Miftah Ismail, however, believes that the economy is on the right track and once political stability returns — which has been uncertain since the coalition government’s take over — the rupee will strengthen against the dollar.
