Dollar climbs to record high against Pakistani rupee

ISLAMABAD: The US dollar rose to a record high of 300.25 against Pakistani rupees in the interbank market on Friday, up 61 paisas from the previous close, as the country grappled with the economic fallout following a new IMF loan agreement.

The greenback has gained 11.76 rupees, or 4.1%, since August 11, when it closed at 288.49 rupees, according to data from the State Bank of Pakistan.

The dollar has surged 24.81 rupees, or 9%, since May, when Pakistan reached a $3 billion stand-by arrangement with the International Monetary Fund (IMF) to support its economic stabilization program.

Dollar shoots up to above Rs 300

The IMF deal, which was approved by the fund’s executive board on July 12, requires Pakistan to implement fiscal and monetary reforms, including a market-determined exchange rate and an appropriately tight monetary policy.

The IMF said the programme aimed to create space for social and development spending to help the people of Pakistan, who have been hit hard by a difficult external environment, devastating floods, and rising inflation.

Pakistan’s annual inflation rate rose to 9.7% in July, the highest in more than two years, driven by higher food and fuel prices.

The country’s foreign exchange reserves stood at $16.8 billion as of August 13, down from $18.9 billion at the end of April.