Winning Business Desk
Mumbai. Amidst the ongoing political crisis in Pakistan, the country is going through a very rough period so far with a historic fall in the rupee. The Pakistani rupee reached a record level of Rs 189 against the dollar intra-day on Thursday and closed at Rs 188.18, down by Rs 2.05 or 1.09%. The Pakistani rupee has been depreciating for months, but the fall intensified in March when opposition parties moved a no-confidence motion against Prime Minister Imran Khan and the government dissolved the National Assembly. After hearing this for 4 days, the Supreme Court said on Thursday - it is illegal to dismiss the no-confidence motion and dissolve the assembly. Now the Parliament session will be called on 9th April. There will be a vote on the no-confidence motion.
Pakistani rupee depreciates by 10%
The currency has fallen 10% since March 4. The Pakistani rupee closed with a decline in 16 days out of the last 17 working days. This flat was closed only on 24 March. It has weakened by 23.58% from the level of May 2021's record high (Rs 152.27). At the same time, since March, reserves have fallen from $ 16 billion to $ 12 billion. The deficit has reached 70% in the nine months of the financial year 2021-22.
Pakistan's currency under double pressure
Former Finance Minister Dr. Hafiz Pasha said that Pakistan's currency is under double pressure - economic and political. The reason for this fall of the rupee is the uncertain political situation, rising current account deficit and depleting foreign exchange reserves. Pasha said that Pakistan's requirement for the next four-five months is around $13 billion, but due to the ongoing political and economic crisis in the country, it has become difficult to meet this demand.
Increased problems of importers
Pakistan's weak currency and low reserves have increased the trouble of importers. Importers are not able to arrange dollars to make the payment. Pasha said, “If we are able to control the rising imports, then the rupee may close to Rs 200 against the dollar in the current financial year 2021-22 ending on June 30. If this does not happen and the political crisis deepens, then the trouble will increase significantly.
