The Pakistani Rupee (PKR) continues to face challenges in the foreign exchange market, with its value weakening by 53 paisas to the US dollar on Thursday, April 27, 2023.
The exchange rate closed at PKR 283.92 to the dollar, compared to the previous day’s closing of PKR 283.39 in the interbank foreign exchange market. This decline is indicative of the ongoing economic and political uncertainties facing Pakistan.
READ MORE: PKR to dollar at interbank closing on April 26, 2023
Currency experts attribute this decline to the roadblocks in the International Monetary Fund (IMF) loan program, which have frustrated the market and caused panic among investors. Additionally, there is mounting demand for foreign payments, which has further pressured the exchange rate. The political uncertainty arising from the conflict between the parliament and the supreme over the elections in the Punjab has also contributed to the decline in the PKR.
READ MORE: PKR to dollar interbank forex market closing on April 20, 2023
It is worth noting that the PKR had recovered on the previous day due to the news of a breakthrough between Pakistan authorities and the IMF regarding the loan program under the Extended Fund Facility (EFF). Additionally, the current account had posted a surplus for the first time in over two years in the month of March 2023. However, the PKR had reached a historic low of PKR 288.42 to the dollar on April 11, 2023.
READ MORE: PKR to Dollar in interbank foreign exchange market on April 19, 2023
Experts are concerned about the decline in remittances and the depletion of foreign exchange reserves. They are urging for quick action to stabilize the currency and attract foreign investment. The recent positive developments, such as assurances from the IMF regarding Pakistan’s ability to repay its loans, commitments from Saudi Arabia and the UAE to fund Pakistan, and the ease of import and corporate payments before Eid holidays, have helped alleviate concerns about the country’s financial stability.
READ MORE: Pakistani Rupee appreciates by 81 paisas against US Dollar on April 18
The PKR has been facing challenges for some time now, with the IMF loan program being a crucial component of the country’s economic recovery plan. However, the delays and roadblocks in this program have led to further uncertainty and volatility in the foreign exchange market. It is crucial for the Pakistani government to take swift and effective action to stabilize the currency and address the underlying economic challenges facing the country.
