PKR shatters all records, hits Rs299 against USD in interbankBusiness
The rupee slipped to an all-time low against the rupee, falling by 3.02 per cent in the interbank market on Thursday, apparently after the political situation deteriorated further.
The violent protests provoked by the PTI chairman’s arrest entered the third day on Thursday, as an accountability court in Islamabad handed over the custody of Imran Khan to NAB for eight days in connection with the Al Qadir Trust case.
The PKR was being traded at Rs299 per dollar in the interbank market around noon, a decline of Rs.8.78 from yesterday’s close of Rs290.22.
The open market reported the dollar rate at Rs301, around Rs4 higher than the previous day.
Malik Bostan, chairman, Forex Association of Pakistan, said the political unrest in the country, Pakistan’s absence on the staff level agreement meeting agenda by the International Monetary Fund (IMF) as well as yesterday’s report of decrease in remittance by 12pc were behind the steep decline in the local currency.
Bostan added that these factors have decreased buyer confidence and the importers were panic buying.
Pakistan’s absence on the IMF agenda meeting means that the country may not get the loan tranche by June, which increases it’s chances of default.
Analysts and researchers said the exchange rate would further deteriorate in the coming weeks since the worsening political situation had provided valid reasons for donors like the IMF to stay away until and unless the situation calms down.
They said Pakistan would not get help from the IMF and other friendly countries, which saved it from default during the current fiscal year.