Pakistani rupee plunges by 24pc against Indian currency in seven months: SBP

KARACHI: Pakistani Rupee (PKR) has recorded a massive decline of 24 per cent against Indian Rupee (INR) during first seven months (July – January) of fiscal year 2022-2023, according to data released by the State Bank of Pakistan (SBP).

The central bank issued interbank rates of all major currencies in PKR, which revealed that the local unit significantly lost value during the period under review.

According to SBP data, the INR was at PKR 2.60 at start of current fiscal year on July 01, 2022 and reached to the level of PKR 3.22 at closing of interbank foreign exchange market on January 27, 2023.

The massive decline in rupee value has been seen against basket of currencies due to slowdown in the economy and political stability in the country.

The exchange rate position aggravated by the present government through controlling the foreign currency in order to contain inflationary pressure. However, it adversely affected and resulted in wide gap between interbank and foreign exchange market besides it also created a black market.

The local currency crashed against the US dollar by 28 per cent during the period under review. The greenback was at PKR 204.85 on start of the current fiscal year on July 01, 2022 to reach at PKR 262.60 on January 27, 2023 in interbank foreign exchange market.

Interestingly, the INR also fell 3.42 per cent against the dollar during the period under review. The dollar was at INR 78.96 at the start of the current Pakistani fiscal year on July 01, 2022 to reach at INR 81.52 at closing on January 28, 2023.

Pakistan and India has long relation of conflict since independence in August 1947. However, a strong economy of both the sides will ensure regional stability and prosperity.

But the weak economic position of Pakistan may put the country into trouble to accept conditions of international community as it is ready to negotiate with the IMF.