Pakistani currency plunges to historic low amid IMF deal uncertainty
Mar 03, 2023
Islamabad [Pakistan], March 3: Pakistan's currency lost 7% of its value against the US dollar on Thursday, sinking to a historic low amid uncertainty on the revival of a stalled bailout package by the International Monetary Fund (IMF).
The rupee's value dropped to 285 against $1 from Wednesday's level of 263, in the highest single-day depreciation, country's central bank said.
Pakistan is seeking the revival of a $7-billion bailout package that was agreed in 2019, but has been suspended several times over Islamabad's inability to meet the conditions.
Pakistan would receive as immediate disbursement of $1.1 billion tranche if the IMF package is revived, Finance Minister Ishaq Dar said.
With foreign exchange reserves barely sufficient to support imports for two months, Pakistan is in serious danger of defaulting on its international liabilities.
The global body has asked Pakistan to raise energy prices for consumers, let go of the control over currency value and improve tax collection for a revival of the package. (dpa)
Source: Qatar Tribune