KARACHI: The Pakistani rupee experienced a slight decline of 0.02% against the US dollar in the inter-bank market on Tuesday.
As per forex dealers, the local currency lost five paisas and was being quoted at 283.90. This comes after the rupee weakened against the dollar on Monday, closing at 283.85 in the inter-bank market.
Experts say the decline in the Pakistani rupee’s value was prompted by Moody’s Investor Service’s warning that Pakistan could default without an International Monetary Fund (IMF) bailout.
The country is facing uncertain financing options beyond June, as reported by Bloomberg on Tuesday. Grace Lim, a sovereign analyst with the ratings company in Singapore, stated, “We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June. However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF programme, Pakistan could default given its very weak reserves.”
This development will be concerning for Pakistan’s economy as the country relies heavily on external financing to meet its financial obligations. The government has been in talks with the IMF for a bailout package, but the negotiations have been ongoing for some time and yet to reach a positive conclusion.
