The Pakistani rupee has lost ground against the US dollar for the sixth consecutive session as it has further fallen 0.10 percent on Wednesday.
The rupee dropped Rs0.22 against the dollar closing at 226.37, according to the State Bank of Pakistan (SBP).
During the current calendar year the rupee has lost roughly 22.1 percent of its value. The rupee had depreciated on Tuesday against the US dollar when it fell by Rs0.33 or 0.15 percent to close at 226.15.
Market analysts and currency traders have linked the surge in the smuggling of US dollars into nearby nations which have also been fueling the informal/grey market.
The Federal Minister of Finance and Revenue Ishaq Dar reaffirmed that the smuggling of US dollars to a neighbouring nation on Wednesday. He remarked, “Smuggling must end and authorities are cooperating to solve the problem.” Dar also said that it was the reason for the disparity in prices between the open and grey markets.
Business community witnessed a significant breakthrough on Tuesday as the SBP agreed to remove the import restrictions starting on January 2, 2023. SBP also instructed banks to prioritize and facilitate imports of energy, agricultural inputs, export-oriented businesses, vital goods and imports with deferred payments.