The rupee fell below the 271 level in the interbank market on Thursday as pressure against the US dollar persisted.
The local currency decreased by Rs2.53 or 0.93 percent in relation to the US dollar to close at 271.36, according to the State Bank of Pakistan (SBP). During the current fiscal year the local currency’s value versus the US dollar has decreased by 24.51 percent.
The rupee closed at its lowest level ever on Thursday as negotiations between Pakistan and the International Monetary Fund (IMF) went on in Islamabad.
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 just helpless local users.
Additionally the international lender increased Pakistan’s inflation estimate from 19.9 percent to 21 percent in 2023 citing 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 percent in January. This is the biggest inflation number since May 1975, when 27.8 percent was reported.