Pakistani rupee dips past 200 a dollar, IMF’s help uncertain

ISLAMABAD: Pakistan’s currency plunged past 200 a dollar for the first time ever as a shortage of dollars threatens to spiral into a fullblown crisis. The rupee weakened 0. 08% and closed at 200. 14 a dollar in Karachi Friday, the central bank said on its website. The nation’s foreign-exchange reserves now cover less than two months of imports.
Policy makers are in talks with the International Monetary Fund to revive a stalled loan programme.Key conditions would require PM Shehbaz Sharif to raise fuel prices, which risks stoking public anger with inflation already at 13%. Meanwhile ousted PM Imran Khan has threatened to lead protests calling for early elections. The rupee may drop as low as 210 a dollar if the uncertainty isn’t resolved, as per Samiullah Tariq, head of research at Pakistan Kuwait InvestmentCo. The nation’s benchmark KSE-100 index has declined for past five straight weeks.