The Pakistani rupee has reached a new low against the US dollar, trading at Rs299.64 in the interbank market. This marks a 0.63% decrease from the previous day’s rate of Rs299.1, according to data from the State Bank of Pakistan.
In the open market, the exchange rate for the dollar stands at Rs314. Currency dealers attribute this depreciation to the easing of import restrictions, which has increased the demand for the US dollar.
In an effort to preserve its diminishing foreign reserves, Pakistan had implemented import restrictions in 2022. However, these restrictions were lifted from June onwards as part of a $3 billion loan program from the International Monetary Fund (IMF) to support the struggling economy.
It is important to note that Pakistan is currently under a caretaker government, which aims to navigate the country through a national election by November. The political landscape is filled with tension, while inflation and interest rates remain at historic highs.