The Pakistani rupee’s trading price has dipped tremendously against the dollar price. It has reportedly hit a record low against the dollar price.
Even the dollar bonds have recorded a slump in the latest trading session. The country has been trying really hard to deal with the financial crisis and its deal with the IMF is expected to be very important.
The country is really short on its reserves and if it wants to continue managing its finances and funds, it needs funding from the IMF.
It is a highly critical IMF funding deal that the Pakistani Finance Ministry is trying hard to get approved. It is a bailout package for the country that is going to help recover some of its economies.
The country has been working hard to deal with the finances and the rising inflation rates. To deal with this situation, the country has been increasing its interest rates.
Although the country has reached the highest level for interest rates, still, the country’s economic situation has not recovered.
The inflation rates being faced by the country are the record highest and it is still not able to get out of the troublesome times.
The demise of the Pakistani Rupee
The data shows that the trading price of the Pakistani rupee has dipped tremendously against the dollar price.
In the latest market session, the trading price of the PKR plunged by 6.66% against the greenback. As of now, the trading price of the PKR is at 285.09 against the dollar.
This is the lowest level the PKR has hit against the USD in the history of Pakistan.
The situation of the international bonds of Pakistan is also not looking well. The value of the bonds has fallen against the USD by 3 cents.
It seems that the economic situation of the country is still steering in the south direction. The country is low on everything, whether it is the import/export sector or the production sector.
Even the unemployment rate has peaked in the country and there are no signs of recovery.
PKR Price since the Start of 2023
The PKR has not been performing well since the beginning of 2023. The PKR price was in a state of decline almost throughout the year 2022 as well.
The rupee is constantly losing its value against the major currencies, especially against the dollar. The statistics show that from the beginning of 2023 until now, the value of the rupee has dipped by almost 20%.
The main reason behind the demise in the value of the PKR is the deal that was expected to take place in January between the IMF and the country.
The Pakistani Government has been trying its best to sit with the International Monetary Fund (IMF). When the meeting is held, the officials will negotiate the terms of the new package.
However, the meeting is constantly getting delayed because the IMF is not ready to have a meeting at present. The international monetary authority is constantly delaying the meeting and that is causing a dent in the country’s currency.
No Investments for Pakistani Rupee
Since March 2022, the country’s economic and financial situation has taken a negative turn. Ever since the regime took place in April 2022, there is a lot of uncertainty among investors.
The value of the PKR has been declining because investors have lost their confidence in Pakistan’s progress due to political uncertainties.
There is currently a war going on between the ruling government and the opposition, which is the largest political party in Pakistan.
The current opposition party is the former ruling party that was dethroned by the current government (PDM) on basis of an economic crisis.
PDM had claimed that the country was in a state of the financial crisis and that was their mandate for calling a vote of no confidence against Prime Minister Imran Khan.
Turns out, after taking over the government, PDM has failed tremendously while PTI, the current opposition party’s popularity has grown tremendously.