The Pakistani rupee has begun to slide against the US dollar due to a lack of substantial dollar inflows in September 2023, marking the second consecutive month of depreciation, reports The News on Thursday.
In July 2023, Pakistan recorded a substantial inflow of $2.89 billion, as reported by the Economic Affairs Division (EAD). When considering the disbursed loan of $1.1 billion from the IMF under the $3 billion Standby Arrangement (SBA), the total disbursement reached $4 billion.
Sources confirmed on Wednesday that in the past two months, August and September, Pakistan’s ability to secure dollar loans returned to normal, with loan disbursements amounting to $316 million and $320 million, respectively.
In an attempt to stabilize the rupee-dollar exchange rate, the military establishment, in coordination with intelligence and law enforcement agencies, launched operations against money changers and speculators. This effort initially improved the rupee’s standing. However, administrative actions alone had their limitations, and economic managers failed to supplement these measures with strategies to boost dollar inflows. Consequently, as inflows dwindled, the effectiveness of these administrative actions waned, leading to the rupee’s depreciation against the US dollar.
