KARACHI
A day after Pakistan was rocked by violent protests triggered by the shock arrest of PTI Chairman Imran Khan, the Pakistani rupee was crashed against the US dollar in interbank market on Wednesday.
According to the information received from the forex dealers, at the start of the business the local currency resisted pressure from the greenback but by the noon it crumbled, losing Rs3.55 in its value. The US dollar was currently being traded at Rs288.50.
During the last three business day, the greenback had been appreciated by Rs4.91 in value against the Pakistani rupee.
On Tuesday, the Pakistani rupee had sustained losses against the US dollar, settling with a depreciation of 0.35%. The local currency closed at 284.84, a decrease of 99 paisas.
In a related development, Moody’s Investor Service warned that Pakistan could default without an International Monetary Fund (IMF) bailout, as the country faces uncertain financing options beyond June, according to Bloomberg on Tuesday.
“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” Grace Lim, a sovereign analyst with the ratings company in Singapore, was quoted as saying by Bloomberg.
“However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF programme, Pakistan could default given its very weak reserves.” Meanwhile, the Ministry of Finance on Tuesday said the government had made arrangements for the repayment of $3.7 billion debt due in May and June.
Pakistan is desperately seeking to resume its bailout programme that had been stalled at the ninth review since November last year.
