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Pakistan rupee touches a new low, could lose further until IMF deal is finalised

Pakistani rupee in a free fall

The Pakistan rupee, which hit a fresh low of 202.83 to a US dollar on Tuesday, could continue to fall further as the much awaited bailout package from the International Monetary Fund (IMF) is yet to be finalised.

Last month, it breached the 200 to a dollar mark for the first time. On May 26, it touched 202 against a dollar.

State Bank of Pakistan (SBP) Deputy Governor Sima Kamil said at an event stability would return only after the IMF agreement, “The agreement is expected after the forthcoming budget (presentation on Friday),” the Express Tribune said in a report.

Also read: IMF's austerity pill set to hurt common Pakistanis the most

It added that Tuesday was the third consecutive working day for the rupee’s free fall. The currency has cumulatively lost 2.65 per cent – Rs 5.24 of its value in the three days, the report said.

The brewing economic crisis in the South Asian nation has hit the common citizens the most. A depreciation of currency leads to inflation. Pakistan’s inflation in May stood at 13.76 per cent- the highest in over two years. Discontent among the common citizens is growing.

Pakistan’s Finance Minister Miftah Ismail came out with a series of tweets blaming the former Imran Khan-led Pakistan Tehreek-e-Insaaf (PTI) government for the current economic mess. He noted that Pakistan has the third highest inflation in the world due to the “incompetence” and “corruption” of the PTI government.