Pakistani rupee continues to loose its ground against US dollar. The weakening currency is a sign of continuous increase in import payments as well as lowering exports. The weakening trend is resulting in changing of rates on a daily basis. The dollar has been strengthening since the month of May 2021. However, its recent spree in the last few days is resulting in disbalancing of currency market in Pakistan.
Although, there has been a great disbalance in Pakistani rupee in comparison with the US dollar. Yet, the dollar has seen a massive strength against the Pakistani currency in the last few years. The economists claim that this trend is due to high costs of imports, continuous outflow of US dollars due to debt repayments, increasing prices of oil and other commodities and other similar factors which result in decreasing the value of Pakistani rupee.
A number of scholars claim that political uncertainty also plays a key role in currency destabilization. Moreover, the dependency of Pakistani government on IMF and other multi-level stakeholders also lowers its ability to make economic transactions benefitting its own currency.
Current Rate of US Dollar to PKR
The current market rate of US dollar is PKR 163..67. This is one of the historically highest rates in Pakistani economic history. The dollar rate was also very high during the 2018-19 and 2019-20. With the arrival of coronavirus, the Pakistani rupee was able to recover as the debt repayment was recycled.
On the other hand, the government sources claim that the import bill for the month of June was $6.3 billion. Additionally, the current account deficit for the same period was $1.3 billion. This is a huge amount at the year end which definitely results in damaging the market sentiment. However, it may affect the business community as the costs of imports will further increase with this trend.