Pakistan's economy has been jostled by rising inflation and a depleting pile of forex reserves, as food prices have led to fights over wheat and other commodities in the streets. The arrest of former Prime Minister and opposition figure Imran Khan has only aggravated this situation by triggering protests and clashes between his supporters and the authorities.
Because of the double whammy dealt to an embattled economy, the Pakistani rupee hit another all time low of 300 against the US dollar.
Free fall aggravated by political crisis
According to a Bloomberg report, the currency tumbled another 3.3 per cent, although the Karachi stock exchange bounced back after a three-day losing streak.
This has added to the pressure of paying back external debt as well as inflation at a record level of 36.4 per cent in April, triggered by global headwinds.
In the middle of this crisis, the IMF has reiterated that it is engaging with Pakistan on seeking funds to reach an agreement.
Efforts to secure funding hurting Rupee
Moves such as removing caps on exchange rate to secure funding, have led to depreciation in the currency, and the central bank has also raised repo rates to a record high of 21 per cent.
As its liquid foreign reserves continue to slide, Pakistan has also increased taxes and removed subsidies.
