Guwahati: The Pakistani rupee continued to lose value against the US dollar despite the weakening economy and declining currency, dropping to Rs 227.88 in the interbank market, reported The Express Tribune.
The latest decline occurred as a result of the government’s inability to advance in negotiations with the International Monetary Fund (IMF) to restart its stalled USD 6.5 billion loan programme.
Comparing the value of the native currency to Rs 217.79 in early October, it has lost 4.42 percent (10.09 Rs) of its value over the past three months.
The country’s foreign exchange reserves have decreased to USD 6.5 billion, which is just enough to finance imports for the country for 25 days while the IMF plan is still on hold, reported The Express Tribune.
The interbank exchange rate of Rs 227.88, according to financial analysts, is not the true worth of the rupee. The illicit market, however, offered the US dollar for as much as Rs 270.
One of the main causes of the delay in the IMF program’s restart was the attempt by Finance Minister Ishaq Dar to artificially regulate the value of the rupee in the interbank market. The lending institution has requested that the government allow commercial banks and market forces to set the rupee-to-dollar parity, reported The Express Tribune.
The government’s forced restriction on imports due to declining foreign exchange reserves has had a detrimental effect on the nation’s economic operations.
Several industrial facilities have either partially or entirely shut down as a result of the lack of imported raw materials.
In addition, Pakistan’s foreign debt obligations for the following six months total USD 13 billion, raising worries that the nation may not be able to meet these payments.
According to The Express Tribune, the IMF program’s restart is the only way for the country to avoid default.
On the other hand, the All-Pakistan Sarafa Gems and Jewellers Association (APSFJA) said that local gold prices decreased by Rs 3300 to Rs 181,800 per tola.
This was true even though global gold prices rose by USD 5 per ounce that day, reaching USD 1,876, reported The Express Tribune.
According to the experts, the decline in the domestic market shows that there was less demand for the commodity there than there was on the global market.