Pakistani currency sees biggest 1-day slump in 20 years

The Pakistani rupee saw its biggest one-day decline in over two decades on Thursday. The country’s currency fell 9.6 per cent against the dollar on Thursday, according to the central bank of the South Asian country. The slump was so severe that it prompted the International Monetary Fund (IMF) to resume lending to the country.

The foreign exchange companies had removed a cap on the Pakistani rupee-dollar exchange rate. This was a key demand of the IMF as part of a programme of economic reforms it has agreed on with the debt-laden South Asian nation.

Federal Board of Revenue Chairman Asim Ahmed has termed the current financial situation in the country as ‘critical’, the Dawn reported on Friday.

“Economic situation [in the country] is critical and there is a shortfall in revenue. We will soon overcome the tax gap,” Ahmad said during his address at a function held at the Customs House here on Thursday to mark the International Customs Day, according to news agencies.

The lender announced on Thursday that it was sending a mission to the country at the end of January for discussing on the lines of resuming these disbursements. 

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