Pakistani currency maintained its downturn on the second consecutive working day, as it freshly dropped 0.48% (or Rs0.90) to hit the second lowest historic-level of Rs187.53 against the US dollar in the inter-bank market on Monday.
In the past two days, the local currency cumulatively dropped by 1% (or Rs1.84) as compared to Rs185.69 on April 30, according to the central bank’s data.
The market remained closed during May 1-5 on account of weekly offs and Eid holidays.
The rupee stood mere 0.34% (or Rs0.65) away from an all-time low of Rs188.18 on April 7 amid the then political and economic instability.
“The rupee has maintained a downturn in the wake of a rebound in the international crude oil prices,” Uraan (an economic research house) CEO Syed Atif Zafar said while talking to The Express Tribune.
The oil price hovers at over $110 a barrel at the global markets these days as compared to less than $65 per barrel a year ago in February-March 2021.
Pakistan heavily relies on imported energy to meet the local demands. The energy import bill has doubled to $14.81 billion in the first nine months (Jul-Mar) of the current fiscal year 2021-22 from $7.55 billion in the same period of the previous year.
Besides, the country’s foreign exchange reserves have dropped to a critical level of less than two months import cover at $10.55 billion compared to usual three months import cover.
He said that the rupee also came under pressure after a week delay in resumption of Pakistan’s talks with the International Monetary Fund (IMF) for resuming a $6 billion loan programme. The talks are likely to be held on May 18 in Doha.
Besides, the government has yet made no apparent success in acquiring fresh bailout packages from friendly countries including Saudi Arabia and the United Arab Emirates.
Published in The Express Tribune, May 10th, 2022.
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