Pakistan: Since Prime Minister Imran Khan took office in August 2018, the Pakistani rupee has fallen by more than 70 per cent. Following the recent USD 3 billion loan from Saudi Arabia, policymakers in the country are now banking on the expected assistance from the International Monetary Fund (IMF).
What has surprised policymakers is that the Pakistani rupee has continued to fall in value despite the recent Saudi loan. "In recent days, it has become clear that bits of good news such as the arrival of three billion US dollars in a Saudi loan to bolster the State Bank's reserves or the conclusion of a staff agreement between Pakistan and IMF officials for resuming the loan have virtually failed to stem the continued pressure on the rupee," the News International reported.
As part of a bailout package, the International Monetary Fund committed to providing Pakistan with Extended Fund Facility (EFF) support in times of crisis in 2019. The rupee, which was worth around 107 to the dollar in August 2018, when Khan was appointed Prime Minister, is now worth around 178, causing concern for the cricketer-turned-politician, who faces elections in two years.
Analysts told India Narrative that the country's currency's steady decline could be a reflection of larger political issues than just economic challenges.
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