KARACHI: For the past three days, the rupee remained under pressure mainly on account of increasing demand for the US dollars due to very high oil prices in the international market.

Currency experts in the interbank market said the dollar demand was still high despite a slowdown in the overall imports in February.

The dollar rose by 43 paise in three days to Rs177.83 on Thursday reflecting the trend that might take the exchange rate to the highest level of over Rs178.

Experts said the current increase in the oil prices due to war in Ukraine has escalated the dollar demand in the local market. The oil prices have crossed $110 per barrel which means Pakistan will have to pay a heavy cost of this war. The country depends largely on oil imports for its fuel and electricity. Liquefied Natural Gas (LNG) is also not available which has badly hit the local industry.

Industries in Pakistan have been using LNG for their power generation which slowed down their production and it will ultimately cut the exports from the country.

Published in Dawn, March 4th, 2022

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