KARACHI: The Pakistan Rupee (PKR) on Thursday witnessed a historic single day fall of Rs2.05 as dollar reached to another record high of Rs188.18 at interbank foreign exchange market.
Currency experts said that the foreign exchange market was remained volatile during the day owing to scheduled repayment of government external debt and political uncertainty after dissolution of national assembly.
The rupee ended Rs188.18 to the dollar as compared with previous day’s closing of Rs186.13 in the interbank foreign exchange market.
The rupee fell non-stop against the dollar for the last 17 trading sessions. The local currency recorded Rs178.51 at interbank closing on March 11, 2022 and since then the dollar’s made gain Rs9.67.
The local unit recorded a decline of Rs30.64 or 19.45 per cent against the dollar since start of the current fiscal year. The rupee was at Rs157.54 to the dollar on June 30, 2021 and fell to Rs188.18 to the dollar on April 07, 2022.
Currency experts attributed the new wave of rupee devaluation to political uncertainty at home and an international conspiracy to regime change in Pakistan.
Many believe that Pakistan was not able to receive funds from international agencies, which resulted in massive fall in foreign exchange reserves in past few weeks.
Pakistan’s foreign exchange reserves have depleted by $2.88 billion in a week to $18.554 billion by week ended March 25, 2022, State Bank of Pakistan (SBP) said on Thursday. The foreign exchange reserves of the country were $21.44 billion by week ended March 18, 2022.
This is seventh consecutive week when the country’s foreign exchange reserves have witnessed consistent decline. The liquid foreign exchange reserves of Pakistan have declined by $5.167 billion since February 04, 2022, when the reserves were at $23.721 billion.
The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year.
Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.
The trade deficit widened by 70 per cent to $35.39 billion during first nine months (July – March) 2021/2022 as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.
The exports of the country recorded an increase of 24.67 per cent to $23.3 billion during first nine months of the current fiscal year as compared with $18.7 billion in the same months of the last fiscal year.
Meanwhile, import bill registered an increase of 48.63 per cent to $58.69 billion during July – March 2021/2022 as compared with $39.49 billion in the corresponding period of the last fiscal year.