Pakistani rupee has strengthened as a result of government assistance since Ishaq Dar took over as finance minister...
Digital Desk: The Pakistani rupee fell to an all-time low of 255 to the US dollar in the interbank market on Thursday, amid reports that the International Monetary Fund (IMF) may revive the postponed loan package.
After the government's support for the currency ended, the currency plummeted by Rs 24.11 — 9.45 percent — in a single day. According to the Express Tribune, the IMF has requested the government to allow market forces (mostly commercial banks) to establish the currency rate, which is one of four primary conditions imposed by the multilateral lender.
The Pakistani rupee has strengthened as a result of government assistance since Ishaq Dar took over as finance minister in September, succeeding Miftah Ismail. Other IMF conditions include raising taxes and removing import restrictions. Dar has urged for market intervention to support Pakistan's currency.
Pakistan is currently experiencing significant inflation as well as a shortage of necessities, notably food. The country's factories are now struggling to stay afloat since the country's cash-strapped government has been unable to pay off the containers stranded at its ports. This could cause a major interruption in the supply chain, compounding Islamabad's troubles, as it must repay $73 billion by 2025.
Due to dwindling foreign exchange reserves, the government is also facing severe petroleum scarcity. The country's current foreign exchange reserves total $4.6 billion.
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