<p>The Pakistani rupee dived to an historic low against the US dollar on Thursday after an exchange cap was lifted as Islamabad campaigns to unlock a vital bailout from the IMF.</p>.<p>Pakistan is in dire economic straits, with shrivelling foreign exchange reserves only enough to pay for around three weeks of imports amid an endless effort to service external debt.</p>.<p>The rupee shed 24.11 in the official interbank market on Thursday, falling as low as 255.43 rupees to the dollar, according to multiple sources.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/pakistan-government-mulling-10-cut-in-workers-pay-amid-crisis-1184513.html" target="_blank">Pakistan government mulling 10% cut in workers' pay amid crisis</a></strong><br /><br />The 9.6 per cent decline of the rupee is the second-biggest drop in a single session, brokerage Topline Securities said.</p>.<p>The previous official low of 240 rupees was recorded in July 2022, when Pakistan's long-struggling economy was further weakened by political chaos and devastating floods.</p>.<p>In 2019, the government of former prime minister Imran Khan brokered a multi-billion dollar loan package from the International Monetary Fund (IMF).</p>.<p>But the economy slid backwards when Khan reneged on his promise to cut subsidies and market interventions that had cushioned the cost-of-living crisis.</p>.<p>Prime Minister Shehbaz Sharif, who ousted Khan in a no-confidence vote last spring, has also been reluctant to meet loan conditions amid falling popularity.</p>.<p>Exchange Companies Association of Pakistan President Zafar Paracha told <em>AFP</em> the cap was lifted on Wednesday "in consultation with the state bank".</p>.<p>Mohammad Sohail, the CEO of Topline Securities, told <em>AFP</em>: "Inflation is bound to rise further."</p>.<p>Pakistan is drastically short on forex reserves owing to persistently rising demand for the dollar.</p>.<p>Thousands of shipping containers packed with raw materials for industry, foodstuffs, and medical equipment are being held up at Karachi port because banks have refused to guarantee importers' dollar transactions.</p>.<p>Pakistan also suffered from a nationwide electricity outage earlier this week, linked to a cost-cutting measure, estimated to have cost the textile industry alone $70 million.</p>
<p>The Pakistani rupee dived to an historic low against the US dollar on Thursday after an exchange cap was lifted as Islamabad campaigns to unlock a vital bailout from the IMF.</p>.<p>Pakistan is in dire economic straits, with shrivelling foreign exchange reserves only enough to pay for around three weeks of imports amid an endless effort to service external debt.</p>.<p>The rupee shed 24.11 in the official interbank market on Thursday, falling as low as 255.43 rupees to the dollar, according to multiple sources.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/world-news-politics/pakistan-government-mulling-10-cut-in-workers-pay-amid-crisis-1184513.html" target="_blank">Pakistan government mulling 10% cut in workers' pay amid crisis</a></strong><br /><br />The 9.6 per cent decline of the rupee is the second-biggest drop in a single session, brokerage Topline Securities said.</p>.<p>The previous official low of 240 rupees was recorded in July 2022, when Pakistan's long-struggling economy was further weakened by political chaos and devastating floods.</p>.<p>In 2019, the government of former prime minister Imran Khan brokered a multi-billion dollar loan package from the International Monetary Fund (IMF).</p>.<p>But the economy slid backwards when Khan reneged on his promise to cut subsidies and market interventions that had cushioned the cost-of-living crisis.</p>.<p>Prime Minister Shehbaz Sharif, who ousted Khan in a no-confidence vote last spring, has also been reluctant to meet loan conditions amid falling popularity.</p>.<p>Exchange Companies Association of Pakistan President Zafar Paracha told <em>AFP</em> the cap was lifted on Wednesday "in consultation with the state bank".</p>.<p>Mohammad Sohail, the CEO of Topline Securities, told <em>AFP</em>: "Inflation is bound to rise further."</p>.<p>Pakistan is drastically short on forex reserves owing to persistently rising demand for the dollar.</p>.<p>Thousands of shipping containers packed with raw materials for industry, foodstuffs, and medical equipment are being held up at Karachi port because banks have refused to guarantee importers' dollar transactions.</p>.<p>Pakistan also suffered from a nationwide electricity outage earlier this week, linked to a cost-cutting measure, estimated to have cost the textile industry alone $70 million.</p>