Karachi: Rupee battered unabated by dollar as domestic unit plunged by fresh 4.78 percent (or Rs 8.87) to new all-time low of Rs 268.30 against dollar in interbank market.

Rupee recorded single largest slump in a day back of 9.61 percent (or Rs24.54) to Rs 255.43 against greenback. Accordingly, rupee has recorded cumulative drop of almost 14 percent (or Rs37.41) in just two days. Domestic unit saw steep fall following government ending its control over rupee-dollar exchange rate and letting market forces determine it under an International Monetary Fund condition.

Reserves are barely enough for two to three weeks’ import requirement. Besides, Pakistan is scheduled to repay foreign debt worth $ 7 billion in last five months (Feb-Jun) of current fiscal year 2023. It will repay another $ 74 billion in next three years-FY24 to FY26.

Revival of IMF programme will help country raise new debt of around $ 3-$4 billion from multilateral and bilateral creditors soon, including Fund, World Bank and Asian Development Bank. Moreover, rupee devaluation will increase flow of workers’ remittances and export earnings through official channels. This will lead to an improvement in foreign exchange reserves.

Published in The Daily National Courier, January, 28 2023

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