After Pakistan’s decision to seek IMF’s help in stabilizing its foreign currency reserves yesterday, the Pakistani rupee has registered a steep Rs 12.74 fall against the US dollar. It is now being traded at Rs 137 in the open market.
Sources say that after seeking the IMF for the economic bailout, the government may let it rest around the Rs 135 mark as part of the adjustment. As per local media reports, the USD was trading at Rs 124.25 in the open market on Monday.
With the rupee’s devaluation, it is estimated that the external debt held by Pakistan has risen by Rs 900 billion.
US dollar rate has been revised to Rs. 137 with an increase of Rs. 12.74 in the Open Market.
Despite these developments, the Karachi Stock Exchange broke its long bearish streak by rising to 38842 points after gaining 878 points on the back of the news that Pakistan is going to the IMF.
The rupee’s weakness has been attributed to the dwindling foreign currency reserves as well as the looming balance of payments crisis. Some experts state that its current devaluation may be part of the tough conditions imposed by IMF in order to secure the loan for Pakistan.