KARACHI: A steady fall in Pakistani Rupee (PKR) continued against the dollar on Tuesday as the local currency lost another five paisas in interbank foreign exchange market.
The exchange rate recorded a decline of five paisas in rupee value to end PKR 224.70 to the dollar from previous day’s closing of PKR 224.65 in the interbank foreign exchange market.
READ MORE: PKR weakens by 25 paisas to dollar on foreign payment demand
Currency experts said that the rupee witnessed pressure because of higher demand of the dollar for import and corporate payments.
They further said that falling foreign exchange reserves also impacting adversely the exchange rate.
Pakistan’s official foreign exchange reserves have plunged to multi years low to $6.72 billion by week ended December 02, 2022. The official reserves of State Bank of Pakistan (SBP) fell by $784 million to $6.715 billion by week ended December 02, 2022 when compared with $7.499 billion a week ago i.e. November 25, 2022. Previously, the SBP reserves were seen at $7 billion in April 2014.
READ MORE: Rupee eases against dollar amid sharp decline in forex reserves
The central bank said that during the week ended December 02, 2022, SBP reserves decreased by $ 784 million to $ 6,714.9 million.
This decline is on account of the payment of $1,000 million against maturing Pakistan International Sukuk and some other external debt repayments.
Some of the debt repayments were offset by inflows, mainly $500 million received from Asian Infrastructure Investment Bank (AIIB), the SBP added.
Last week the chief of the central bank made a statement regarding foreign payments to be made by the country.
READ MORE: PKR devaluation against dollar continues despite strict monitoring
SBP Governor Jameel Ahmad said that the country will continue to make timely repayments while inflows are expected to increase significantly in the second half of the current fiscal year.
He said, for the fiscal year 2023, around $33 billion were to be repaid to external stakeholders, including the Current Account Deficit (CAD) of $10 billion and $23 billion in loan repayments.
Out of the payable $23 billion external debt, Pakistan has already repaid more than $6 billion whereas as a bilateral loan of $4 billion has been rolled over with the cooperation of relevant countries.
READ MORE: Dollar advances to PKR 224.16 at interbank closing on Dec 07
