Pakistan’s currency tumbled in early morning trading on Tuesday after the country’s finance minister on Monday announced his government would approach the International Monetary Fund for a bailout.
The Pakistani rupee fell more than 7 per cent to PKR134 to the dollar, according to figures reported by Reuters, which were confirmed by a Karachi-based banker.
That takes the carefully-managed currency more than 25 per cent lower against the dollar since the beginning of last December, as policymakers attempt to resolve the country’s foreign exchange crisis.
Tuesday’s drop came after Asad Umar, the finance minister, announced on Monday night that Pakistan would approach the IMF for a bailout for the 13th time in its history. The country’s stores of foreign currency now stand at $8.4bn – barely enough to cover imports until the end of the year.