KARACHI: The Pakistani Rupee (PKR) fell slightly against the dollar on Friday amid demand of the foreign currency for import and corporate payments.
The exchange rate witnessed a decline of two paisas to end at PKR 223.94 to the dollar from previous day’s closing of PKR 223.92 in the interbank foreign exchange market.
READ MORE: PKR slumps to dollar amid SBP tight monitoring
Currency experts said that the dollar demand was remained high for import and corporate payments during the day.
Some good news on the political front supported the rupee against the dollar. A day earlier, a new army chief was appointed by the Shehbaz government, which was not disputed by PTI chairman Imran Khan.
The currency experts said that the measures taken by the SBP were not enough as Pakistan’s external sector was facing huge challenges.
READ MORE: Rupee fails to maintain recovery; dollar gains to PKR 223.81
Latest investment data released by the State Bank of Pakistan (SBP) revealed the foreign direct investment plunged by 52 per cent in first four months of the current fiscal year.
The current account deficit recorded contraction in the first four months of the current fiscal year it swelled when compared with the previous month.
Pakistan needs foreign inflows on urgent basis to avoid balance of payment crisis. The foreign exchange reserves of Pakistan fell sharply during past few months making it difficult for the government to fulfill its foreign repayment commitments.
READ MORE: Rupee beats dollar after seven sessions to end at PKR 223.42
Foreign exchange (forex) reserves of Pakistan were at $13.796 billion by week ended November 11, 2022 as compared with $13.721 billion a week ago i.e. November 04, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $13.432 billion.
READ MORE: Dollar rises for 7th straight session, reaches to PKR 223.66
The official foreign exchange reserves of the State Bank nominally increased by $3 million to 7.96 billion by week ended November 11, 2022 as compared with $7.957 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP dropped by $12.185 billion.
