KARACHI: The Pakistani rupee depreciated further in the interbank market on Tuesday hitting a new low of 224 in the interbank market against the US dollar.
The foreign currency gained Rs8.80 during the intraday trade.
Experts are of the view that the dollar maintains its upward trajectory owing to the political uncertainty triggered by the thumping defeat of the ruling PML-N at the hands of PTI in the Punjab by-elections.
As per the data released by the State Bank of Pakistan (SBP) on Monday showed that the local unit lost Rs4.25, or 1.97%, against the US dollar to close at an all-time low of Rs215.20.
It was the highest day-on-day depreciation after March 26, 2020.
On June 22, the rupee had closed at a record low of 211.93 against the greenback and since then the currency has remained volatile.
Analysts believe, however, that the domestic political and economic situation are not the only factors at play.
“The dollar is getting stronger in the global market almost against all the world currencies and the Pakistani Rupee is not exception,” said Alpha Beta Core CEO Khurram Schezad.
Speaking of Pakistan’s financial situation, Schezad said that the country’s external account issues “are not settled as yet, the IMF (International Monetary Fund) is yet to be on board, and the flows are yet to materialise”.
“Global rating agencies have put a negative outlook on the economy, so that is an additional burden that is weighing on the financial markets in general and foreign exchange market in particular,” he added.
‘Sharifs never had any expertise in running economy’
Slamming the government, PTI Chairman Imran Khan said that the economic meltdown shows the Sharifs never had any expertise in running the economy or administration and their only expertise is looting, money laundering and getting NROs.
“When the US regime conspiracy’s VoNC was tabled $ was at Rs 178. Today it is Rs 224 & in freefall despite IMF agreement,” he tweeted.
He said that the nation will hold accountable all those responsible for regime change conspiracy and bringing Pakistan to this sorry state of affairs.
‘Pakistan reaches brink of disaster’
Referring to the nose-diving value of the Pakistani rupee, PTI leader and former finance minister Asad Umar on Tuesday said that Pakistan has reached the brink of a disaster.
Taking to Twitter, Asad Umar said that the rupee has plunged to the new historic low of 222-221 against the greenback in the interbank market.
“Will they end the terrible experience of foreign intervention themselves or will the Pakistanis, like the people of Sri Lanka, have to do it themselves?” asked the PTI leader.
‘Things are not good’
Former chairman of the Federal Board of Revenue Syed Shabbar Zaidi said that things are not good but we have to correct it.
He said, “The kind of rhetoric going in politics is totally divorced from the economic situation. There is a limit for deterioration. Once it is crossed it becomes unmanageable.”
He suggested that all the Pakistanis should look beyond themselves to steer the country out of the current economic crisis.
Miftah Ismail should act
Journalist Shahbaz Rana said that the State Bank of Pakistan is working without a head for the past 75 days. He maintained that the local unit lost Rs10 against the US dollar within a short span of the last two days.
The journalist said that Finance Minister Miftah Ismail can no more sit idle and let the rupee sink.
“It’s the height of govt indecisiveness. If the dollar is not controlled, petrol, and electricity prices to increase to an unimaginable level,” he wrote.