Update 2: PKR plummets by 3.66 rupees per USD

May 10, 2023 (MLN): The Pakistani rupee (PKR) continued its downward journey as the currency lost around 3.66 rupees against the US dollar during intraday trade compared to the previous closing of PKR 284.84 per USD. 

The local unit was quoted at PKR 288.31/289.81 [12:24 PST] with the trades being reported at 288.5 per USD while in the open market, PKR is being traded at 289/292 per USD.

The currency has already been in a mess due to weak macros and delay in IMF's tranche. Now, the arrest of Chairman PTI Imran Khan has added more fuel to the fire. 

With regards to the outlook of PKR, the analyst fraternity is of the view that political stability is the major requirement to restore economic stability which ultimately supports the local unity to get stabilized.  

On the economic front, Moody’s Investor Service has warned that Pakistan could default without an International Monetary Fund bailout as its financing options beyond June are uncertain. 

“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” according to Grace Lim, a sovereign analyst at Moody's in Singapore.

At the same time, the Finance Division informed that the government has arranged the rollover/repayment of debt worth $3.7 billion which was supposed to be repaid by the end of June 2023.

"The media has carried the news that 3.7 billion dollars have to be repaid by GoP by the end of June 2023, which is correct. However, this should not be any cause for concern as arrangements have been made for the rollover/repayment of this debt," the statement issued by Finance Division read. 

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