The rupee continued to lose ground against the US dollar on Thursday for the 14th consecutive session and depreciated by 50 paisa in the interbank market.

       According to the Forex Association of Pakistan (FAP), the dollar was trading at Rs202.40 at around 1:30pm after appreciating against Wednesday's close of Rs201.90 yesterday, according to State Bank of Pakistan (SBP) data.

       In the open market, the greenback was trading at Rs203.50 around 1:30pm.

       The persistent decline in the rupee's value since May 10 has been largely attributed to the country's rising import bill, widening current account deficit and depleting foreign exchange reserves.

       Since the PML-N-led coalition government took over on April 11, when the dollar was valued at Rs182.30, the greenback has risen by Rs18.50, or 10.15pc.

       Malik Bostan, chairman of the Forex Association of Pakistan, told Dawn.com blamed the political crisis in the country for the dollar's march. "If politicians do not solve these problems together, the transfer of capital will accelerate, increasing the value of the dollar."

       He continued that rupee was also under pressure because of falling foreign exchange reserves and over $10 billion of external payments due.

       "Debt from international financial institutions can alleviate the pressure on the rupee," Bostan added.

       Moreover, FAP secretary general Zafar Paracha said that investors were hopeful of success in government's negotiations with IMF. "But they [the facility] refused to release the funds until the removal of fuel subsidies.

       "This development, too, has increased the pressure on the rupee," he pointed out.

       Yesterday, the IMF said it had "emphasised the urgency of concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives".

       According to the facility, the mission held "highly constructive discussions" with the Pakistani authorities aimed at reaching an agreement on policies and reforms that would lead to the conclusion of the pending seventh review of the authorities’ reform programme.

       It said the considerable progress was made during the mission, including on the need to continue to address high inflation and the elevated fiscal and current account deficits, while ensuring adequate protection for the most vulnerable.

       "In this regard, the further increase in policy rates implemented on May 23 was a welcome step. On the fiscal side, there have been deviations from the policies agreed upon in the last review, partly reflecting the fuel and power subsidies announced by the authorities in February," the IMF added.