Home Economy Pakistan rupee at record low amid flight of dollars to Afghanistan

Pakistan rupee at record low amid flight of dollars to Afghanistan

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The Pakistani rupee has lost around 9% against the dollar in last four months.

On Tuesday, the dollar hit a previous high of 168.94 rupees, shattering investors’ confidence in the unit and exchange rate stability.

The rupee has been losing purchasing power rapidly in the domestic market, causing a rise in inflation that has badly hurt consumers.

“At present, around 25% dollars (of the total available in Pakistan) is going to Afghanistan from Pakistan’s northwestern city of Peshawar,” Malik Bostan, chairman currency traders association told Hum News, a private news channel.

Before the Taliban takeover of Kabul, every 15 days, U.S. planes used to bring in $500 million to Afghanistan, he said.

The cash was distributed to NATO forces and the government and used to trickle down in the market, and at the time, the dollar was cheaper in Afghanistan than in Pakistan.

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