KARACHI: The US dollar hit record high at 188.45 to Pakistan Rupee (PKR) by midday trading at the interbank foreign exchange market on Tuesday.
The dollar has appreciated by 92 paisas so far today to reach Rs188.45 as compared with last day’s closing of Rs187.53 in the interbank foreign exchange market.
Currency experts said that the rupee was under pressure during the day due to higher dollar demand for import payments.
They said that due to higher international oil and commodity prices the dollar demand has been seen in the market.
The rupee hit an all-time low at Rs188.18 on April 07, 2022.
Currency experts said that dollar demand was high at market open because of weekly holidays.
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.
According to details released by the State Bank of Pakistan (SBP), the official reserves of the central bank fell by $328 million to $10.558 billion by the week ended April 23, 2022 as compared with $10.886 billion a week ago. The net foreign exchange reserves of the SBP also include $3 billion from Saudi Arabia, which was deposited with the central bank to support balance of payment.
The foreign exchange reserves of the country fell to $16.668 billion by week ended April 23, 2022 as compared with $17.045 billion by week ended April 16, 2022.
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.