KARACHI
Snapping its three-day winning streak against the US dollar, Pakistani rupee depreciated by 26 paisas (-0.09 percent) on Monday.
The State Bank of Pakistan said in a statement that the dollar opened at Rs283.59 in the interbank market and closed at Rs283.85. Within the open market, the rupee was traded at 286.50/289.50 per dollar against 286/289 a dollar a session earlier.
During the current fiscal year 2022-23, Pakistani rupee has lost Rs77.98 against the US dollar in the interbank, while it plummeted by Rs57.42 against the greenback in the current year.
Pakistan has been facing a shortage in its foreign exchange reserves for quite some time, which is affecting the overall exchange rate, and business and economic activity in the country. Recent bilateral funding and rollovers have brought down some of the pressure on the local currency.
However, the country is still suffering from an acute balance of payment and a shortage of foreign exchange reserves.
The uncertainty over the ninth review of Pakistan’s economy by the International Monetary Fund (IMF) under its loan programme has resulted in the rupee sliding. The market awaits the resumption of the IMF programme, which remains stalled to date. The Pakistani rupee dived to a historic low against the United States dollar after an exchange cap was lifted as the cash-strapped country seeks to unlock a vital bailout from the IMF.
The Washington-based lender has yet to approve the release of the crucial instalment of $1.1 billion, originally due to be disbursed in November last year as part of a $6 billion bailout secured in 2019. Multilateral and bilateral financing pledges for Pakistan’s effort to rebuild after devastating floods last year are also tied to the country getting the green light from the IMF.
