ISLAMABAD: Pakistan’s cash-strapped currency plunged against the dollar on Thursday after the government signaled it was ready to abide by strict conditions set by the International Monetary Fund for the next tranche of its bailout package.
Pakistan is asking for a crucial $1.1 billion tranche from the fund – part of its $6 billion bailout package – to avoid default. Talks with the IMF on reviving the bailout have stalled in recent months.
The rupee closed at 230 to the dollar on Wednesday. It slid further, trading at 255 for $1 hours after the market reopened on Thursday. The government did not immediately comment on the developments.
Analyst Ahsan Rasool says the falling rupee is a sign that Pakistan was close to securing the much-needed IMF loan.
The rupiah’s decline comes days after Prime Minister Shahbaz Sharif said his government was ready to adhere to “tough IMF terms” to relaunch the $6 billion rescue package, which had been on hold for several months.
Pakistan is currently grappling with one of the country’s worst economic crises amid dwindling foreign exchange reserves. It has raised fears that Pakistan could default, although Sharif insists he pulled the country from the brink of default when he took power last year.
Sharif blamed Prime Minister Imran Khan and his government for the economic malaise. Khan was ousted in a no-confidence in parliament in April and has since campaigned for a snap election.
Pakistan is asking for a crucial $1.1 billion tranche from the fund – part of its $6 billion bailout package – to avoid default. Talks with the IMF on reviving the bailout have stalled in recent months.
The rupee closed at 230 to the dollar on Wednesday. It slid further, trading at 255 for $1 hours after the market reopened on Thursday. The government did not immediately comment on the developments.
Analyst Ahsan Rasool says the falling rupee is a sign that Pakistan was close to securing the much-needed IMF loan.
The rupiah’s decline comes days after Prime Minister Shahbaz Sharif said his government was ready to adhere to “tough IMF terms” to relaunch the $6 billion rescue package, which had been on hold for several months.
Pakistan is currently grappling with one of the country’s worst economic crises amid dwindling foreign exchange reserves. It has raised fears that Pakistan could default, although Sharif insists he pulled the country from the brink of default when he took power last year.
Sharif blamed Prime Minister Imran Khan and his government for the economic malaise. Khan was ousted in a no-confidence in parliament in April and has since campaigned for a snap election.
