KARACHI: The US dollar made new record high of Rs201 against the Pakistan Rupee (PKR) during midday interbank trading on Monday May 23, 2022.
The exchange rate recorded 86 paisas fall in rupee value as dollar is being traded at Rs201. The rupee was closed at Rs200.14 by closing in interbank foreign exchange market last Friday i.e. May 20, 2022.
Currency experts said that massive fall in foreign exchange reserves and high import payments were the major reasons behind rupee fall.
It is pertinent to mention that the government imposed a ban on all luxury items last week in order to manage balance of payment and support rupee value.
However, political noise has put pressure on exchange rate as PTI Chairman Imran Khan has given May 25, 2022 for a long march towards Islamabad.
Pakistan’s foreign exchange reserves fell to $16.161 billion by the week ended May 13, 2022. The foreign exchange reserves of the country were $16.373 billion by week ended May 6, 2022.
The country’s foreign exchange reserves hit record high at $27.228 billion by the week ended August 27, 2021. Since then the foreign exchange reserves have depleted by $11.067 billion.
The official reserves of the State Bank witnessed a decline of $146 million to $10.163 billion by the week ended May 13, 2022 as compared with $10.309 billion a week ago.
The SBP reserves reached a record high at $20.145 billion by August 27, 2021. The official reserves also fell by around $10 billion after reaching record high. The official reserves of the SBP have been reduced to provide import payment cover for only 1.50 months.
The import bill of the country surged by 46.41 per cent to $65.49 billion during the first 10 months of the current fiscal year as compared with $44.73 billion in the corresponding months of the last fiscal year.
Pakistan is a net importer of petroleum products to meet its domestic demand. The country’s oil bill was $14.81 billion during the first nine months (July – March) 2021/2022 as compared with $7.55 billion in the corresponding period of the last fiscal year, showing a massive growth of 96 per cent. The oil bill is around 25 per cent of the total import bill of the country.