The Pakistani Rupee PKR has witnessed its worst performance in history. PKR fell for the 13th continuous time against the USD on Tuesday. USD reached a record highest price of about 239.71 in the international foreign exchange market. This is the worst condition of the Pakistani Rupee since the beginning of the currency. Pakistan has been under the many hits of high rates of the United States Dollar price. But this is the worst performance so far. International Monetary Fund (IMF) has approved a loan of about 1.2 billion USD. Experts were confident that PKR will have better value.
After the recent disasters caused in Pakistan due to Floods, the world has responded positively to the government’s request for help. It is estimated that at least a half billion USD has been received by Pakistan. In an official statement by the UN, it is said that Pakistan has already taken up to 40% of the international aid. This leaves a big question on the government’s performance. Despite such a huge amount of foreign aid coming in from all sides of the world flood victims are still suffering.
Moreover, the country’s currency is also depreciating in value day by day. The main reason for this depreciation is the expenditure of foreign reserves. The coalition government in just 5 months of its coming into power has almost spent most of the country’s foreign reserves. People believe that the previous government has performed extremely well. But the newly formed government was not able to come up to the promises they made before the outcast.
In the early days of the disaster, the World Health Organization (WHO) released $10 million from its emergency fund. Moreover, World Bank announced $350 million, the World Food Program donated $110 million in terms of foreign funding. In addition to that countries such as Japan donated $7 million, the UK donated $46.6 million and the US gave $31.1 million to Pakistan. Flood victims are still suffering heavily under the disaster with disease and restlessness.
Saudi Fund for Development (SFD) has announced that it will give the State Bank of Pakistan $3 billion to deposit as Foreign Reserves. However, this move will improve PKR’s performance in the world market. Moreover, this help will also further strengthen the relationship between KSA and Pakistan.