The dollar reached a new high in the inter-bank market Monday against the Pakistani rupee, surging past the Rs. 194 mark amid concerns over the government’s strategy to deal with the economic crisis.

According to market reports, the local unit has lost Rs. 11.07 since the installation of the new government led by Prime Minister Shahbaz Sharif last month.

Rising current account and trade deficits, greater external debt payments, and drying dollar inflows are proving a toxic mix for the rupee, which hit a record low of 192.53 to the dollar in the interbank market on Friday.

The rupee fell by 2.66% during the last week.

“Dollar demand is expected to continue to outstrip greenback supply, and the currency is likely to see new record low levels,” said a currency dealer after the end of the last trading session.

“However, any positive development on the IMF [International Monetary Fund] loan talks to be started on May 18 may help pull the rupee out of a slide back towards the lows,” he had added.

The financial experts have been pressing the government to take difficult decisions to bring stability to the financial markets.

Prime Minister Shehbaz Sharif, who was in London last week holding meetings with the PML-N supremo Nawaz Sharif, is scheduled to take the heads of allied parties into confidence today and seek their approval before taking decisions on ending the subsidies on petroleum products.

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