ISLAMABAD - Uncertainty and delayed actions on economic front from the coalition government are continuously depreciating the local currency, as US dollar touched all-time high above Rs190 threshold on Wednesday.

The local currency is continuously under pressure from the last few days mainly due to the much delayed actions on economic front including increasing oil and electricity prices, which might affect the upcoming talks with International Monetary Fund (IMF). Pakistani rupee has touched an all-time low against the US dollar yesterday. US dollar has gone beyond Rs190 threshold in the interbank as well as open market. The rupee had ended at Rs188.66 to the dollar on Tuesday as compared with Monday’s close of Rs187.53.

According to the market sources, dollar at one time has increased to Rs190.90 in the interbank market before settling at Rs190.02 at the day’s end. The last time the dollar reached an all-time high was on April 1, when it crossed the Rs189 mark.

Pakistani currency has devalued massively in the current fiscal year. The rupee has collectively dropped by a massive 20.61% (or Rs32.48) since July 2021 compared to the previous fiscal year’s close at Rs157.54.

Rupee us under pressure due to another reason of declining foreign exchange reserves. The country’s foreign exchange reserves are declining due to repayment against previous loans and financing of current account deficit, which is widening mainly because of higher oil imports. The government would have to increase oil and electricity prices to qualify for much needed tranche from the IMF to generate foreign exchange reserves of the country.

An official of the Ministry of Finance hinted that the government might increase oil prices from May 16 ahead of talks with the IMF, which are scheduled from May 18.