Pakistan’s currency plunges again as country seeks IMF loan

ISLAMABAD – Pakistan’s currency has plunged further as the country is mired in a financial crisis and seeking an $8 billion bailout package from the International Monetary Fund.

The Pakistani rupee was trading at 142 to the dollar on Friday, a decline from 133.90 rupees to $1 at close of business the previous day.

Analyst Mohammad Suhail says it’s a clear indication the government has no option but to accept IMF conditions for the bailout — the “bitter pill” required to tackle significant economic challenges such as high fiscal and current account deficits, low growth and foreign exchange reserves.

He says the rupee has plunged 15 per cent since parliamentary elections in July and 36 per cent over the past year.

IMF and Pakistan held a week of negotiations in Islamabad earlier this month.