KARACHI: The Pakistani Rupee continues to depreciate against the US dollar on Monday as the rupee reached a historic low of Rs194 against the greenback in the interbank market.
According to the Forex Association of Pakistan (FAP), it shed Rs1.30 against the dollar to reach Rs194.30 in the interbank trade. Forex dealers were trading at Rs195.50 in the open market.
The rupee had closed at Rs192.53 on Friday according to the central bank. The previous week’s data showed that the dollar had risen to record highs against the rupee for five consecutive days.
When the PML-N-led coalition government took over on April 11, the dollar was valued at Rs182.3. Since then, the rupee has lost Rs11.4 or 6.2 percent of its value.
The balance of payment crisis which might worsen further amid a potential hike in energy prices is mounting pressure on the rupee. The energy import bill is already up by 72% in the first 10-month of the current fiscal year 2022.
The country’s foreign exchange reserves have depleted to a 22-month low at $10.3 billion. Therefore, the country’s import cover has been reduced to just 45 days at present compared to the usual 90 days import cover.
Pakistan is also estimated to pay an additional $4.4 billion on foreign debt repayment over the next two months. The government needs to convince the IMF to restore the bailout package and remove oil subsidies but has deferred the decision.
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