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The Pakistani rupee falls for the ninth session in a row.

Due to the dire economic scenario brought on by historic flooding around the nation, the Pakistani rupee kept falling against the dollar for the ninth session in a row on Wednesday.

According to information provided by the State Bank of Pakistan, the local currency decreased 2.40 rupees to settle at Rs234.32 in the interbank market, down from the previous closing of Rs231.92 versus the dollar.

In addition to the floods, which even eclipsed the IMF programme renewal, the nation is also experiencing political unrest, which has kept investors on their toes.

Pakistan has experienced ongoing political unrest ever since Imran Khan’s administration was overthrown in April. Investors have a number of reservations regarding the current government’s policies notwithstanding the passage of months.

According to Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP), it is crucial that all parties get together to discuss and find solutions to Pakistan’s problems.

The ECAP representative stated that it was anticipated that the rupee would appreciate against the dollar once the International Monetary Fund (IMF) loan came in, and it did as it increased by Rs2.

But despite receiving funding from the international lender, the government did not receive funding from multilateral and bilateral organisations, he pointed out, therefore the decline has continued ever since with just tiny increases.

According to Paracha, the World Bank, the Asian Development Bank, and friendly nations like Saudi Arabia, the United Arab Emirates, and Qatar are still hesitant to lend money to and make investments in Pakistan.

The IMF’s Executive Board was about to authorise giving Pakistan the money when the PTI-led governments in Punjab and KP decided they would not comply with the IMF’s standards. Paracha cited political instability as the primary cause of this.

“Due to this, a detrimental effect was produced. Although PTI controls a sizable portion of the nation and is significant, political stability is currently needed, and the administration lacks a clear direction “He bemoaned.

Despite being in power, all the parties, according to Paracha, are acting like they are in the opposition. “Nobody is doing anything to help the populace, and nobody wants to revive the economy. Everyone is engaging in finger-pointing.”

But in addition to criticising government officials, Paracha also gave the State Bank of Pakistan (SBP) plaudits, noting that the organisation has over time played a useful role through a variety of measures.

The effect of the floods, according to Paracha, has been pegged at $30 billion by government officials, but he fears that it could actually be closer to $50 billion.

The losses are significant, but we don’t have enough donations to make up the difference, he claimed.

33 million people have been devastated by floods brought on by unprecedented monsoon rains and glacier melt in the hilly north, which have killed around 1,400 people. Homes, roads, railways, cattle, and crops have also been destroyed.

He claimed that the government’s decision to buy products from Iran and Afghanistan had put pressure on the currency.