Pakistan rupee has depreciated by Rs. 2.25 against the US dollar and has crashed to Rs.146. Just a couple of days have passed after Pakistan secured $6 billion bailout package from IMF. The aim was to stabilize the foreign currency reserves, but the rupee has fallen down steeply.
The Pak-IMF agreement was signed on Sunday and the IMF board has to give its final approval. But the dollar has already surged against Pakistan Rupee in the market.
In the open market, the US currency is being traded at an all-time high rate of Rs146.25.
The reason given for Rupee depreciation is the depleting foreign currency reserves along with the balance of payments crisis. The devaluation is due to the strict conditions imposed by IMF for the bailout package for Pakistan.
This rupee depreciation will affect the economy of the country. As seen in the past, as soon as rupee devalues against the dollar the petrol prices are increased, automakers raise car prices and all in all inflation is high in the market.
Pakistan will receive $6billion from IMF in the time period of 3 years as it has finalized its deal with the International Monetary Fund.