The dollar reached a 10-month high against the Pakistani rupee, dropping to Rs165.2 in the inter-bank market on Tuesday after another 0.47% decrease.
As per the State Bank of Pakistan (SBP), the PKR depreciated to 165.20 against USD at the close, a 10-month low. The rupee last went beyond 165 back in October 2020.
The currency has been on a downward trajectory since May 2021, with the rising import bill and a widening current account deficit putting pressure on the rupee.
The drop comes amid an increase in the trade deficit, said President of Forex Association of Pakistan, Malik Bostan, while talking to a newspaper. Pakistan’s trade deficit has ballooned by 81.4% to $3.058 billion in July 2021 as compared to $ 1.686 in the corresponding month of 2020.
According to provisional foreign trade figures during the first month of the current fiscal year (2021-22), country’s goods import payments increased significantly by 51 percent to $5.396 billion in July 2021 compared to $3.557 billion July 2020.
Meanwhile, Pakistan’s current account posted a $773-million deficit during the first month of the current fiscal year (FY22) due to a higher import bill
The State Bank of Pakistan (SBP) has received $2.75 billion from the International Monetary Fund (IMF) as part of the newly allocated Special Drawing Rights (SDR), the central bank announced on Tuesday.