That the country’s exchange rate dropped again 4.5 PC to 223.42 to one dollar from the strongest level in mid-August showed that Rupee would remain under pressure-at least for some time. Indeed, the lack of dollars is the main reason for the beating of Rupee. Pasar anxiety has recently been incited by the soaring headline price inflation that jumped to the highest level of 47 years 27pc last month,

as well as ongoing disaster floods that have caused enormous economic losses throughout the country and it is likely to slow down the GDP growth near near near near near near near the near the near the near the near the near the near the near the near the near the near the near the near the near 3.5 pc for fiscal at this time. The pressure of constructive recession in Europe and the US also tends to hurt growth in countries like Pakistan.

In addition to damage to inflation and floods, the increasing demand for foreign currencies from open markets by travelers, mainly because of the UAE requirements for Pakistani people to carry 5,000 dirhams, and an increase in new food imports also worsen the Parity of Rugee. No wonder the price of the US open market is far above the interbank level, or in the range of RS10 and RS15 on normal premiums to RS2. While the country’s economic fundamentals remain weak, deeper political uncertainty also continues to shake the currency market.

Since the dismissal of Imran Khan, Rupee has reduced almost a quarter of its value in interbank trade. Rupee will continue to fall against the dollar unless the country receives a large cash injection in loans and assistance related to flooding from multilateral institutions and bilateral lenders. With the country projected by the IMF to ask for external financing between $ 31 billion and $ 39 billion per year to FY26 to avoid default, the Rupee road towards stability and sustainable recovery will be long and difficult.