KARACHI: the Pakistani rupee on Thursday hit historic low against dollar after depreciating 0.93 percent, closing below the 271 mark in the interbank market.
As per the State Bank of Pakistan (SBP), the currency settled at 271.36, a decline of Rs2.53 or 0.93% against the US dollar. The currency has depreciated by 24.51% during the ongoing fiscal year against the greenback.
Interbank closing #ExchangeRate for todayhttps://t.co/lIkhkkLfCi pic.twitter.com/waVjyFSTUI
— SBP (@StateBank_Pak) February 2, 2023
Thursday’s closing is the weakest level for the rupee and comes as talks between the International Monetary Fund (IMF) and Pakistan continued in Islamabad.
On Wednesday, Pakistan’s rupee was under pressure again, as it had settled at 268.83 after depreciation of Rs0.94 or 0.35%.
In a significant development, the IMF delegation is said to have questioned the Power Division’s senior brass for two days straight about failing to keep agreements, including raising tariffs, underperforming the sector, and limiting subsidies to only helpless domestic consumers.
Additionally, the international lender increased Pakistan’s inflation rate from 19.9% to 21% in 2023, attributing the increase to floods and the weakening of the currency.
According to information made public on Wednesday by the Pakistan Bureau of Statistics (PBS), Pakistan’s headline inflation came in at 27.6% in January. This is the biggest inflation reading since May 1975, when 27.8% was recorded.
