Thursday, December 7, 2023

Pakistani Rupee Hits Historic Low of Rs. 279 Against Dollar

As a result of Prime Minister Shehbaz Sharif’s statement that the IMF is giving Pakistan “a tough time” because it wants the government to do more on the economic front, the rupee on Friday dropped to a record low against the dollar.

The domestic currency fell by almost 1% that is Rs2.53 to a new record low of Rs 271.36 against the greenback, in contrast to Wednesday’s close of Rs268.83, according to the State Bank of Pakistan (SBP).

The IMF has continued to remain tough with Pakistan in the ongoing talks to ensure its prerequisite conditions are implemented. It has demanded political consensus on the resumption of the loan program and has also rejected the government’s circular debt plan.

IMF’s Conditions

No relaxation of the IMF’s conditions has been made despite the government’s repeated requests. This continues to destabilize financial markets, leading to economic uncertainty.

The government has, however, assured the global lending institution that it will implement all of its conditions. The ongoing 10-day talks will end on February 9, 2023.

IMF Delegation in Islamabad

The Prime Minister said that an IMF delegation is in Islamabad and giving the finance minister and his team a very difficult time, at the Apex Committee meeting in Peshawar, calling the economic challenges “unimaginable.”

Bailout Programme

Analysts have stressed that for the nation to avoid default, a threat that has been hanging over Islamabad for some months, it requires the bailout programme offered by the Washington-based lender.

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