NEW DELHI: Pakistani currency plunged against the dollar. The value fell to Rs 255 against the dollar. The devaluation came as the exchange rate eased to get more loans from the International Monetary Fund (IMF). It fell by Rs 24 in one day.
The IMF had asked the government of Pakistan to remove government control over the currency rate and let the rate be determined by the market. Pakistan is trying to access $6.5 billion in aid. The money allocated last year was withheld by the IMF.
Pakistan is reeling under economic recession. Food prices have increased sharply. 3000 rupees per kilo of corn flour in some places. Food is not available in many places. Video footage has emerged of people fighting each other over food items.
Power went out in most parts of Pakistan on Monday due to a power outage. More than 22 crore people are suffering. Last month, decisions were implemented including closing markets and shopping centers at 8:30 to reduce the use of electricity. Meanwhile, the crisis intensified.
The government of Shahbaz Sharif has also introduced cost cutting plans in the country to solve the severe economic crisis. Decisions including cutting MPs’ salaries are being implemented.
English Summary: Pakistan loosens currency controls to win loan; It falls to a record low
