Owing to critically low forex reserves held by the country, the local currency’s depreciation continued with no end in sight, reported 24NewsHD TV channel.

According to the currency dealers, the Pakistan rupee shed another five paisas during Wednesday’s interbank trading letting the US dollar to end the days at Rs227.93. 

https://twitter.com/StateBank_Pak/status/1613115651568332802

Yesterday, the PKR was sunk by 47 paisas against the greenback and the local unit was settled the day's trade at PKR 227.88 per USD. 

https://twitter.com/StateBank_Pak/status/1612749771516837888?cxt=HHwWgIDUrevX0eEsAAAA

Despite Saudi Arabia’s announcement to boost its investment in Pakistan to $10 billion and an increase in the ceiling on deposits into the State Bank of Pakistan (SBP) by $2bn, to $5bn, the country’s forex reserves woes are not over as it needs immediate dollar inflows to reduce the default risk. 

The SBP-held reserves have fallen to $5.6 billion enough to cover less than a month’s imports. The bleak economic macros of the country have triggered downgrades by the international credit rating agencies.

The decline in PKR value may be attributed to delay in the IMF talks which prevented the tranche under the Extended Fund Facility (EFF).

Though Finance Minister Ishaq Dar met an IMF delegation on the sidelines of Geneva Conference on Monday but the meeting ended with no major breakthrough. 

After the meeting, the finance ministry said in a statement that both sides “discussed challenges to regional economies in the wake of Climate change. Finance Minister reiterated the commitment to complete the Fund program.”

 

Reporter Ashraf Khan