Monday 21 October, 2019

Pakistan's currency plunges as it seeks IMF loan

Vendors carry banana on their heads at a fruit and vegetable market in Peshawar, Pakistan. (AP Photo)

Vendors carry banana on their heads at a fruit and vegetable market in Peshawar, Pakistan. (AP Photo)

Pakistan's currency plunged by about seven per cent on Tuesday after the government said it would seek emergency bailout loans from the International Monetary Fund.

Related Article

The Pakistani rupee briefly weakened to 138 to the dollar on Tuesday before settling at 133.6. The rupee was trading at 124.3 at close of business Monday, before the announcement was made.

A Pakistani delegation will meet with IMF officials in Indonesia later this week.

After a visit last week, the IMF said Pakistan is facing significant economic challenges, with diminishing growth, high fiscal and current account deficits, and low foreign exchange reserves.

Pakistan is also seeking fresh loans from China, which is already heavily invested in its transport and energy sectors.

Get the latest local and international news straight to your mobile phone for free: