Weighed down with the uncertainty regarding the revival of the International Monetary Fund (IMF) loan program, and with mounting pressure on the government to announce snap elections, the Pakistani rupee collapsed to a fresh record low in the interbank market.
The State Bank of Pakistan reported that the rupee closed at Rs200 against the greenback on Thursday with a new decline of Rs1.61, or 0.81%.
Yesterday, the rupee closed at Rs198.39; however, the local currency crossed the alarming milestone of 200 within the first few hours as trading opened today.
During the first day of negotiations talks with the International Monetary Fund, Pakistan has hinted that it was willing to take “tough measures”. These include hikes in the prices of petroleum products and electricity, but only in stages, to restart the delayed $6 billion fund program.
The currency reached a record low of Rs188.66 on May 10. It then fell to Rs190.02 on May 11, plunged over Rs191 on May 12, reached Rs192.52 on May 13. It then declined below Rs194 on May 16, went down to Rs195.74 on May 17 and then closed at Rs198.39 yesterday.
Since the start of the ongoing fiscal year on July 1, 2021 to date, the rupee has cumulatively plunged by a staggering 26.95% or Rs42.46.