The Pakistani rupee fell Rs 24 to trade at Rs 255 against the US dollar
New Delhi:
The Pakistani currency has fallen to a record low of 255 rupees against the US dollar today, according to local media reports. The slump comes after the cash-strapped government eased its grip on the exchange rate to secure much-needed loans from the International Monetary Fund (IMF).
Pakistan’s currency exchange firms lifted restrictions on the dollar-rupee exchange rate on Wednesday and said they would slowly drop the local currency in the open market.
The Pakistani rupee fell Rs 24 and was trading at Rs 255 against the US dollar as of 1pm, the Express Tribune reported.
The IMF had asked the Pakistani government to end its control and let market forces set the exchange rate, a condition readily accepted. Pakistan has sought approval from the global body to secure $6.5 billion in funding, which is currently stalled.
While Pakistan won an IMF bailout last year, the release of funds has stalled this year.
Low foreign exchange reserves in Pakistan have led to massive food inflation. In some parts of the country, a pack of flour sells for as much as 3,000 rupees. Videos of people fighting over food and chasing food trucks are doing the rounds on social media.
The country is also plunged into darkness due to frequent power cuts.
“We couldn’t do anything. Everyone is sitting around doing nothing. We can’t operate machines,” says Zafar Ali, who runs a workshop.
The Bank of Pakistan also hiked interest rates to a 24-year high this week to counter rising prices.
Featured Video of the Day
Celebrations of the 74th Republic Day, 1st parade on Kartavya path