Pakistani rupee drops to record low against US dollar amid talks with IMF

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A foreign currency dealer counts US dollars at a shop in Karachi on Thursday. AFP

Pakistan’s currency plummeted to an all-time record low in intraday trading against the US dollar on Thursday, amid uncertainty about the success of crucial talks between the International Monetary Fund (IMF) and the government of Prime Minister Shahbaz Sharif who is considering massive new taxation to avoid a default.

According to the central bank, the rupee slid to 200 against the US dollar, showing a steady decline in the value of this Islamic nation’s currency

Investors are concerned as there is speculation in the market that the IMF may not agree to resume the loan programme, following the government’s reluctance to implement the prerequisite conditions.

The market is also waiting for the outcome of the meetings held between Shahbaz Sharif and his coalition partners.

The local currency has maintained its downturn as Pakistan resumes talks with the IMF in Doha for the revival of the stalled multibillion-dollar loan programme.

According to a government statement, Pakistan’s Finance Minister Miftah Ismail is leading its talks with the IMF. It said these talks, which started on Wednesday, will conclude next week.

Pakistan and the IMF originally signed the accord in 2019, but the release of a key installment had been on hold since earlier this year. That’s when the fund expressed reservations about a delay in Pakistan’s compliance with the conditions of the bailout by the former premier Imran Khan’s government.

Agencies

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