For the first time in history, the US dollar has touched the record level of Rs288 against the Pakistani rupee in the interbank market, reported 24NewsHD TV channel.
According to the State Bank of Pakistan, the greenback on Tuesday bulldozed whatever resistance the local currency has been putting up during the last few sessions, and went up massively in the interbank market.
The US dollar surged by Rs2.96 and touched the Rs288 but settled for the day at Rs287.29, up by Rs2.25.
On Monday, the Pakistani rupee had remained under pressure against the US dollar, depreciating by 0.44% in the inter-bank market, settling at 285.04, a loss of Rs1.25.
The main catalyst for the US dollar’s thrust was appeared to be the latest Asian Development Bank report released early Tuesday which drew a dismal picture of the Pakistani economy amid absence of any IMF programme.
The Bank in its report said Pakistan’s economic growth is expected to slow significantly in FY2023 (ends 30 June 2023) in the wake of last year’s devastating floods, ballooning inflation, a current account deficit, and an ongoing foreign exchange crisis.
Also Read: ADB warns inflation to worsen in Pakistan in rest of 2023
The ADB said Pakistan’s gross domestic product (GDP) growth is projected to slow to 0.6% in FY2023 from 6% last fiscal year as the economy struggles to recover. Growth is forecast to rise to 2% in FY2024, assuming the resumption of macroeconomic stability, implementation of reforms, post-flood recovery, and improving external conditions.
"Pakistan’s economy continues to face strong headwinds while last year’s catastrophic floods have exacerbated the economic and financial challenges,” said ADB Country Director for Pakistan Yong Ye. “Yet, with a history of resilience in the face of adversity and depending on a fast return to stability twinned with robust macroeconomic and structural reforms, Pakistan can bounce back. ADB is committed to continuing to support Pakistan’s economic recovery and development plans.”
Experts believe the currency will likely remain under pressure, especially due to absence of IMF programme and after a cut in global oil production which could boost the commodity’s prices, impacting the current account of countries like Pakistan.
The experts further opined that the political uncertainty has also been leaving negative effects on the Pakistani currency.
Reporter Ashraf Khan