Daily Times

Pakistani rupee fell to an all-time low of 173.47 against the US dollar on Wednesday, breaching Monday’s low of 172.78 amid talks between the government and the International Monetary Fund (IMF) for resumption of $6 billion Extended Fund Facility (EFF).

According to the State Bank of Pakistan, the rupee shed Rs0.69 (-0.40 percent) as the US dollar opened at Rs172.78 and closed at Rs173.47. Within the open market, the rupee was traded at 172.30/174 per dollar. According to currency experts, the market opened after a public holiday, which put pressure of the import payments. Further, the reports of significant widening in the current account deficit also put pressure on the dollar demand.

The current account deficit ballooned to $3.4 billion during July-September 2021, compared with a surplus of $865 million in the corresponding period of the last fiscal year, the State Bank of Pakistan (SBP) reported. The import bill showed a 66.11 percent growth to $18.74 billion during the first quarter of the current fiscal year as compared to $11.28 billion in the corresponding quarter of the last fiscal year.

Higher import bill also widened the trade deficit by 102 percent. The trade deficit swelled to $11.75 billion during July-September 2021, compared to a deficit of $5.81 billion in the same quarter of the last fiscal year.