During intraday trading on April 26, 2023, the Pakistani Rupee (PKR) experienced a depreciation of PKR 1.03 to PKR 284.50 against the US dollar.
According to analysts, this was caused by high demand pressure for the dollar following an extended holiday period. The currency market had been closed from April 21 to April 25 for Eid-ul-Fitr.
On April 11, 2023, the PKR reached a historic low of PKR 288.42 to the dollar.
Experts are worried about the decline in remittances and the depletion of foreign exchange reserves. They urge for quick action to stabilize the currency and attract foreign investment.
However, recent positive developments, such as assurances from the International Monetary Fund (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.
