Pakistan Rupee crosses the 300 mark against Dollar

Islamabad, May 13: Pakistan’s rupee today extended its recent weakness and slumped to an all-time record low amid the unrest following the arrest of former prime minister Imran Khan. The country's currency tumbled 3.3% to an all-time low of 300 a dollar, Bloomberg reported, quoting foreign-exchange desk at Arif Habib Ltd. The Karachi stock exchange index was higher today after tumbling in the previous three sessions.

 

 

 

Apart from the current political unrest, Pakistan's economy has been in turmoil in recent months. Pakistan’s economy is witnessing high inflation and external balance of payments pressures, which are largely driven by adverse global shocks and domestic developments. Higher food prices pushed Pakistan's inflation to rise to a record 36.4% in April, the highest rate in South Asia and up from March's 35.4%.

 

 

 

The country has been in talks IMF for a bailout. The IMF remains engaged with Pakistan on securing funding and policy assurances with the goal of reaching an agreement on the ninth review of the $6.7 billion loan agreed in 2019, a spokesperson of the multilateral body said. Islamabad has taken measures to try to secure the funding, including removing caps on the exchange rate, resulting in a depreciating currency, increasing taxes, and removing subsidies. The central bank has raised the repo rate to a record high of 21%. Pakistan's total liquid foreign reserves have plunged to $10.04 billion, from around $17 billion a year ago. Clashes with police since Khan's dramatic arrest on Tuesday have killed at least 10 of his supporters and injured dozens. Pakistani authorities have also cracked down on his supporters, detaining hundreds in overnight raids and sending troops across the country to rein in the wave of violence that followed his arrest earlier this week.

 

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Khan was dragged from outside a courtroom in Islamabad where he showed up to face graft charges. The Supreme Court was to hear a petition today, seeking his release and arguing that the former premier was illegally detained.