Karachi: Rupee plunged to historic low against dollar. “At day’s close, rupee plunged to 276.58, according to State Bank of Pakistan after losing Rs 5.22 or 1.89 percent of its value. Meanwhile, domestic unit closed at 283 in open market.

Analysts stressed that country needs Washington-based lender’s bailout programme to avoid default threat that has been looming over Islamabad for some months now.

AA Commodities Director Adnan Agar told that rupee’s downward spiral is expected till Pakistan secures staff-level agreement with Washington-based lender. He said that market is reacting to reports coming on demands being put forward by IMF to government.

Agar warned that if government fails to secure staff-level agreement with Fund, then rupee will incur further losses. “If IMF deal is done timely then it would appreciate but not that much,” said Agar.

“Government has asked importers to arrange dollars on their own this is why black market is still active. If this does not stop, gap might even increase,” he warned, urging authorities to move towards import rationalisation.

Published in The Daily National Courier, February, 04 2023

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