The US dollar rose to Rs.167.90 against the Pakistani currency, resulting in an increase of Rs.900 billion in external debt.
In the interbank market, the dollar closed at the highest level in the country’s history by 92 paise, to close at Rs.167.90. The external debt burden has increased by more than Rs.900 billion due to the increase in the value of US currency.
The increased dollar price has also affected the import bill of the country; Pakistan will face higher import bills due to this price change which will eventually affect the balance of trade.
The dollar has soared 9 rupees 23 paisa during the ongoing lockdown in the country due to the Coronavirus. Experts say foreign investors’ withdrawal of short-term investments from domestic loans and stock markets has depreciated the rupee. It is pertinent to regain the investors’ confidence to bring the position back to normal, however; the quick remedy cannot be seen in the near future because of a global pandemic.