ISLAMABAD: Prime Minister Shehbaz Sharif called a meeting of the federal cabinet on Thursday, the Prime Minister’s Office confirmed, a day after the Pakistani rupee depreciated further against the US dollar amid rising political uncertainty in the South Asian country.
On Wednesday, the Pakistani rupee hit another historic low of Rs224.92 against the US dollar. Pakistan’s Finance Minister Miftah Ismail blamed the rupee’s depreciation on the current political situation prevalent in the country.
Pakistan, with low foreign reserves, mounting debt and a widening current account deficit, is desperately looking to revive a $6 billion loan program with the International Monetary Fund (IMF). The delay in the disbursement of funds has exacerbated the South Asian country’s economic troubles. Experts have warned the country faces a balance-of-payments crisis.
“Cabinet meeting starts with Prime Minister Shehbaz Sharif in the chair,” the Prime Minister’s Office said in a statement.
Pakistan’s political turmoil worsened last week when former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party swept by-elections in Pakistan’s most populous Punjab province, winning 15 seats out of 20. As per official results, the ruling Pakistan Muslim League-Nawaz (PML-N) won four seats while an independent candidate won a single seat.
However, despite the setback in Punjab by-polls, the federal government announced it would complete its tenure till next year rather than call early elections.