KARACHI: The US dollar reached to all time high at Rs193 during midday trading at interbank foreign exchange market on Friday.
The rupee lost Rs1.23 to the dollar and being traded at Rs193 from previous day’s closing of Rs191.77 in the interbank foreign exchange market.
Currency experts said that falling foreign exchange reserves and high import payments had escalated dollar demand.
The rupee continued its free fall for the seventh consecutive day yesterday.
Pakistan is net importer of petroleum products to meet its domestic demand. The country’s import 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 country.
The depleting foreign exchange reserves are also putting pressure on the local currency.
Pakistan total import bills recorded an increase of 49 per cent to $58.87 billion during the first nine months of the current fiscal year as compared with $39.49 billion in the corresponding period of the last fiscal year.
This resulted in huge widening in trade deficit of 70 per cent. The trade deficit of the country swelled to $35.39 billion during first nine months of the current fiscal year as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.