(Bloomberg) -- Pakistan’s currency plunged past 200 a dollar for the first time ever as a shortage of dollars threatens to spiral into a fullblown crisis.

The rupee weakened 0.08% and closed at 200.14 a dollar in Karachi Friday, the central bank said on its website. The nation’s foreign-exchange reserves now cover less than two months of imports. 

Policy makers are in talks with the International Monetary Fund to revive a stalled loan program. Key conditions would require Prime Minister Shehbaz Sharif to raise fuel prices, which risks stoking public anger with inflation already at 13%. Meanwhile ousted premier Imran Khan has threatened to lead street protests calling for early elections. 

The rupee may drop as low as 210 a dollar if the uncertainty isn’t resolved, according to Samiullah Tariq, head of research at Pakistan Kuwait Investment Co.

The nation’s benchmark KSE-100 index has declined for past five straight weeks. 


©2022 Bloomberg L.P.