Daily Times

KARACHI: The Pakistani rupee surged to an all-time low against the US dollar on Wednesday, breaching the critical threshold of 190 against the greenback in the interbank market.

The local currency was trading at Rs190.07 against the greenback in the interbank market during intraday trade, surpassing Tuesday’s record low of Rs188.66 due to uncertainty with respect to the International Monetary Fund (IMF) program, coupled with an absence of direction from the government on major economic policies and a roadmap.

The rupee was down because of two major reasons, Arif Habib Limited Head of Research Tahir Abbas said “First, due to uncertainty regarding the revival of the IMF loan program. Second, depleting foreign exchange reserves,” he said.

The analyst further added that lack of direction and clarity regarding the government’s economic strategy, delay in decision making on IMF’s pre-requisites — which include removal of subsidies and increase in petrol, and electricity prices — rising commodity prices in the international market dampened the sentiment of the market.

Abbas said: “Because of the uncertainty regarding the IMF program, other friendly countries have also said loans are contingent on fulfillment of IMF conditions which is also taking a toll on the already depreciating currency”.

“The government needs to lay out a clear economic roadmap,” he asserted.