The rupee plunged to an all-time low against the dollar after losing Rs1.14, closing at Rs185.2 in the interbank market on Tuesday.

On Sunday, National Assembly (NA) Deputy Speaker Qasim Suri prorogued the no-confidence motion against Prime Minister Imran Khan after which President Arif Alvi dissolved the NA on the prime minister's advice.

The legality of these moves is currently being debated in the Supreme Court, which is expected to issue an order soon.

The impact of the situation put pressure on the rupee after which it breached the Rs185-mark for the first time ever earlier today. Mettis Global — a web-based financial data and analytics portal — said that the rupee had lost its worth by more than 3 per cent or Rs5.4 since March 8, when the no-confidence motion was submitted in the NA.

General secretary of the Exchange Companies Association of Pakistan, Zafar Paracha, called today a "black day in the history of Pakistan".

"All exchange companies are selling 99pc of their foreign reserves in the interbank," he said. "The market is suffering because of the worsening political situation."

Paracha added that the news regarding the International Monetary Fund (IMF) Programme further came as a blow.

Yesterday, IMF’s resident representative in Islamabad Esther Perez Ruiz said that the fund would engage with the new government once it was formed.

“The Fund looks forward to continue its support to Pakistan and, once a new government is formed, we will engage on policies to promote macroeconomic stability, and inquire about intentions vis-a-vis programme engagement,” she said, adding “There is no concept of suspension within IMF programmes."

Meanwhile, Paracha said that the market had pinned hopes on an early verdict by the Supreme Court.

Malik Bostan, chairman of Pakistan Forex Association, also urged the apex court to pass an early decision to prevent further damage to the economy.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

‘Source of terror’
Updated 29 Mar, 2024

‘Source of terror’

It is clear that going after militant groups inside Afghanistan unilaterally presents its own set of difficulties.
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...