The Pakistani rupee (PKR) has plunged to a record low against the US dollar (USD) on May 11, 2023, amid a political crisis in the country. According to the Forex Association of Pakistan, one USD was buying at Rs 292 and sold at Rs 296 in the open market. The PKR has lost Rs 11.16 in two days, as the arrest of former Prime Minister Imran Khan sparked violent protests and a nationwide shutdown of mobile broadband services. The USD was trading at Rs 284.84 on May 9, 2023.
The PKR also depreciated against other major currencies, such as the Euro (EUR), the UK Pound Sterling (GBP), the UAE Dirham (AED), and the Saudi Riyal (SAR). The EUR was buying at Rs 316 and selling at Rs 319, the GBP was buying at Rs 362 and selling at Rs 365, the AED was buying at Rs 79 and selling at Rs 79.9, and the SAR was buying at Rs 77 and selling at Rs 77.8.
The devaluation of the PKR has increased the cost of imports and debt servicing for Pakistan, which is already facing a balance of payments crisis and a fiscal deficit. The government has been seeking financial assistance from various sources, including the International Monetary Fund (IMF), China, Saudi Arabia, and Qatar. However, the political instability and security situation have hampered the prospects of economic recovery and reform.