By KUNA,
Islamabad : Pakistani rupee Tuesday hit record low against US dollar, showing a devaluation of more than 24 percent since beginning of this year, further deepening the economic crisis as S and P downgraded Pakistan further into junk territory.
According to the Interbank market rate, on Tuesday the rupee slumped to 78.
80 to the US dollar — a fall of more than 24 percent since the beginning of 2008.
Since the new democratically-elected civilian government has come into power, Pakistan is going through turbulent political, economic and security period.
Ratings’ Agency Standard and Poor’s (S and P) cut Pakistan’s sovereign rating further into junk territory on Monday, saying the country’s worsening external liquidity may imperil its ability to meet about USD three billion in upcoming debt obligations. The agency noted Pakistan would require external assistance in meeting its debt obligations, but expressed concern about whether the help would be enough or whether it would come in time.
The agency underlined mounting concerns over Pakistan’s balance of payments situation amid global financial crises.
While business confidence has also been severely hit by growing instability, the country’s central bank reserves have fallen to USD 4.68 billion, or equivalent to just over two months of imports.
Along with the worsening rupee-dollar parity, foreign investment is virtually becoming nonexistent.
President Asif Ali Zardari has requested the international community to infuse USD 100 billion in grant into Pakistan’s economy to ensure its survival.