KARACHI: Pakistani Rupee weakened by 25 paisas against the US dollar on Monday owing to higher foreign payment demand.
The exchange rate recorded a decline of 25 paisas in rupee value to end at PKR 224.65 to the dollar from last Friday’s closing of PKR 224.40 in the interbank foreign exchange market.
READ MORE: Rupee eases against dollar amid sharp decline in forex reserves
Currency experts said that the first day of the week witnessed pressure on rupee 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: PKR devaluation against dollar continues despite strict monitoring
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.
READ MORE: Dollar advances to PKR 224.16 at interbank closing on Dec 07
Last week the chief of the central bank made a statement regarding foreign payments to be made by the country.
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.
READ MORE: Dollar hits PKR 224.11 amid foreign payment demands
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.
