Pakistan's currency drops to a record low after govt ends control

The drop comes after Prime Minister Shehbaz Sharif-led coalition government eased its hold on the exchange rate to garner much-needed funds from the International Monetary Fund (IMF).

Pakistan's money exchange companies removed the limit on the dollar-rupee exchange rate from Wednesday, to allow the local currency to drop gradually in the open market.

The Pakistani rupee fell by Rs 24 and was trading at Rs 255 against the US dollar at 1 pm, the Express Tribune reported.

Pakistan is scrambling to get the global body's approval for a $6.5 billion loan.

While Pakistan managed an IMF bailout last year, the funds haven't been released this year.

IMF had asked Pakistan to end its control and let the market forces determine its value.

The Pak government accepted the condition readily.

Pakistan’s dwindling foreign exchange reserve has led to massive food inflation and frequent blackouts. Videos on social media show people fighting for staples like flour and medicine.

While Pakistan won an IMF bailout last year, the release of funds has been stalled this year.

In the wake of rabid inflation, Pakistan’s central bank also increased the lending rate to a 24-year high to curb surging prices.