The US Dollar has hit an all time high currency rate in Pakistan, with its highest being Rs.163.50 on the 27th June 2019.
The surge in dollar price against the Pakistani rupee is due to the change in Pakistan’s exchange rate policy and the rising value of the dollar in the international market. All major currencies that were pegged against the dollar depreciated this year. Pakistan is facing a shortage of dollars because imports are more than double the exports. For every dollar earned, we spend two, which leaves us with fewer reserves to pay for essential imports (oil, raw materials, machinery etc), and to repay its foreign loans (more than $90 billion). To address this balance of payment crisis, the government has been exploring all options from seeking a loan from the International Monetary Fund (IMF) to taking help from friendly countries.
So far, we have secured back-to-back aid packages worth $6 billion from Saudi Arabia and UAE. We have already received $2 billion from the Saudis. However, the country needs more dollars to continue payment of essential imports and foreign loan because its reserves stand at $7.4 billion, not enough to sustain even two months of imports.
The talks with the IMF have delayed already and there are reports we cannot join the IMF program until March 2019. Market analysts say the dollar may go further up in case of a further delay in talks with the IMF
