Pakistani rupee drops to record low against US dollar

KARACHI: The Pakistani rupee fell to a record low against the US dollar in the interbank market on Tuesday due to an easing in import restrictions that has lifted demand for the USD.

According to State Bank of Pakistan (SBP), the local unit fell by Rs1.87 against the US dollar to close at Rs299 in interbank.

In the open market, the dollar was changing hands for Rs312.

The local currency closed at Rs297.13 yesterday, rising by Rs1.35 from the last week’s close of Rs295.78.

Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves. The removal of those restrictions beginning in June was a condition of a $3 billion International Monetary Fund loan programme to help the crisis-ridden economy.

Pakistan is currently being governed by a caretaker government that is tasked with steering the country through to a national election that should, in theory, take place by November, while grappling with searing political tension as well as historically high inflation and interest rates.