zohaib haider

The Pakistani rupee plummeted to a record low of 184.5 per USD, tracking an uncertain political situation within the country, a rapid depletion in foreign exchange reserves, and a relatively stronger US dollar. Last week, Pakistani President Arif Alvi dissolved the country’s parliament on recommendations of prime minister Imran Khan as opposition parties tried to oust him through a no-confidence vote which he was poised to lose. This led IMF to temporarily halt its USD 6 billion bailout programme, which however confirmed to support Pakistan once a new government is formed and to involve in policy talks with them to enquire about their intentions about the loan. Also, the country’s foreign exchange reserves fell sharply in March after Islamabad repaid a chunk of external debt, including a syndicated loan facility from China.