KARACHI: The Pakistani rupee continued its downward trajectory against the US dollar on Wednesday, depreciating 0.41% in the inter-bank market during early trading hours.
At approximately 11 am, the currency was being quoted at 286, representing a decrease of Rs1.16.
This decline follows a similar loss sustained by the rupee on Tuesday, settling at 284.84 in the inter-bank market. The fall in the value of the rupee comes amidst a key development in which the Finance Ministry announced arrangements had been made to repay or roll over this fiscal year’s $3.7 billion debt.
However, the ministry sought to allay any fears of financial instability, stating, “This should not be any cause of concern as arrangements have been made for the rollover/repayment of this debt.”
It may be mentioned here that the federal Pakistani government has been grappling with a balance of payments crisis in recent years, leading to a sharp devaluation of the rupee. The country has relied heavily on financial assistance from friendly countries such as China, Saudi Arabia, and the United Arab Emirates to shore up its reserves and pay off its debt obligations.
