NEW DELHI: Pakistani currency plunged against the dollar. The value fell to Rs 255 against the dollar. The depreciation came as the exchange rate eased to get more loans from the International Monetary Fund (IMF). It fell by Rs 24 in a single 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 get hold of $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 surfaced of people fighting each other for food items.
Power went off in most parts of Pakistan on Monday due to a fault in the power supply network. More than 22 crore people are suffering. Last month, decisions including closing of markets and shopping malls at 8:30 to reduce electricity consumption were implemented. Meanwhile, the crisis intensified.
Shahbaz Sharif government has also introduced cost cutting schemes in the country to solve the severe economic crisis. Decisions including cutting the salaries of MPs are being implemented.
English Summary: Pakistan relaxes control on currency to win loan; It falls to record low