Islamabad [Pakistan], March 31 (ANI): The Pakistani rupee (PKR) surpassed the PKR 183 mark against the US dollar for the first time in history on Thursday on the back of political instability in the country and a weak economy.

The rupee closed at Rs183.48 against the US dollar in the inter-bank market, reported Geo News.

The PKR has shed over Rs 25 in value against the USD since the start of the ongoing fiscal year 2021-22.

During the month of March, the rupee has depreciated by 3.38 per cent (or PKR 6.07) against the US currency, the report said.

“Political uncertainty is taking a toll on the financial markets of Pakistan,” Tahir Abbas Head of Research at Arif Habib Limited told Geo News, adding that the pressure on the country’s foreign exchange reserves pushed by the draining of dollars from stocks and government securities (like T-Bills) has also played havoc with the rupee value.

The PKR has maintained a downtrend for the past 11 months. It has lost 20.49 per cent (or PKR 31.21) to date, compared to the 22-month high of PKR 152.27 recorded in May 2021.

“Dollar demand is on the rise due to import payments, and the country is spending more on imports because of high prices of energy and commodities in the global market,” the report said citing currency dealers.

Abbas further noted that currency is expected to lose value will political uncertainty eases. The analyst predicted that the local unit will trade in a range of PKR 180-185 by the end of this fiscal year.

Pakistan is facing political uncertainty with a no-confidence motion tabled against the ruling Pakistan Tehreek-e-Insaf (PTI) expected to be voted upon on April 3.

At the same time, the country is facing heavy external debt and rising inflation within. Pakistan is in talks with the International Monetary Fund (IMF) without much result as the country has been shoddy in implementing the previous policy recommendations of the global lender. (ANI)