The Pakistani rupee has reached the lowest level in its history against the dollar. This fall in the Pakistani rupee has come at a time when the country is going through a serious political crisis and its Prime Minister Imran Khan is trying to save his government from falling.
According to the rate available in the international market, the price of one US dollar on Friday was equal to 189.37 Pakistani rupees. Since July 2021, the value of the Pakistani rupee has depreciated by 18 per cent against the US dollar. At the same time, it has fallen by more than 6% in the last one month.
If you compare the Pakistani rupee with India, then on Friday the value of 1 Pakistani rupee was equal to 0.40 paise of India. That is, less than eight annas. In this way one rupee of India was equal to two and a half rupees of Pakistan.
The Pakistani rupee had been depreciating for months. However, in March last month, the decline intensified after opposition leaders moved a no-confidence motion against Pakistan Prime Minister Imran Khan in Parliament. “The political turmoil has given rise to an uncertainty and has taken a toll on the Pakistani rupee,” Mohammad Sohail, chief of a Karachi-based brokerage firm, told AFP news agency.
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Pakistan’s foreign exchange reserves also decreased
There has also been a fall in Pakistan’s foreign exchange reserves and it has come down from the level of $ 16 billion in March to the level of $ 12 billion. Pakistan’s increasing trade deficit is being said to be the main reason behind the decrease in foreign exchange reserves.
Will there be an economic crisis like Sri Lanka in Pakistan?
Pakistan has to import goods from abroad to meet many of its needs including oil and gas. Foreign exchange is required for imports from abroad. In such a situation, the declining foreign exchange reserves of Pakistan has troubled many economists. His concern is also because recently Sri Lanka is facing its biggest economic crisis ever due to this depleting foreign exchange reserves.
Pakistan laden with foreign debt
Pakistan has taken loans from foreign institutions on several occasions in the past to meet its foreign exchange requirement. Pakistan currently has a debt of over $90 billion. In 2019, Pakistan was given a bailout package of $ 6 billion by the International Monetary Fund (IMF). Half of this amount has been paid. However, in view of the economic condition of Pakistan, talks are being held with Pakistan again to give the remaining amount to the IMF.