As a result of relaxations in import restrictions, the Pakistan rupee fell by Rs 1.88 against the US dollar, hitting record low on Tuesday. In the interbank market, PKR closed at a record low of Rs 299 against the US dollar.
According to Pakistan's central bank data, relaxations in import restrictions has increased demand for the US dollar. Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves, Reuters reported.
The easing of restrictions was one of the conditions of IMF's bailout package for Pakistan. Pakistan began removing the restrictions in June as IMF's condition for a $3 billion loan programme.
The rupee fell 0.6 per cent to an intraday low of 299 against the dollar, Reuters reported quoting traders. PKR slid to record low of 298.93 on May 11, two days after former Prime Minister Imran Khan's arrest in a corruption case.
"The declining trend is mainly attributable to the ease off in the import restrictions coupled with clearance of backlog for goods and services," Reuters quoted Tahir Abbas, head of research at Arif Habib, a Karachi-based brokerage company as saying. Habib added that he expects PKR to trade between 295 and 305 to the dollar for the time being.