ISLAMABAD -UNS: The Pakistani rupee sank sharply by Rs18.98 against the dollar as trading closed on Thursday, with the local currency reaching a historic high of Rs285.09 at close, according to the State Bank of Pakistan.
Analysts attributed the record drop — which is 6.66pc — to the government’s impasse with the International Monetary Fund (IMF).
‘Currency crackdowns only strengthened grey market’
Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan (ECAP), explained to Dawn.com that the IMF had asked Pakistan to trade the dollar at the current Afghan trade rate.
“In other words, they had said our actual rate should be as in the grey market rate, not the interbank rate or the open market. They are right as the availability and trade of dollars taking place right now is only in the grey market,” he added.
He said that the government imposed restrictions on foreign exchange, as a result, the trade shifted to the grey market.
The dollar does not come or go because of the many restrictions they have imposed on foreign exchange companies on its buying and selling, he said.
He said this is despite the government’s crackdowns [on the grey market]. Paracha called for a revamp in the policies, saying conducting crackdowns would not help.
