The turmoil in Pakistan comes as the government negotiates with the International Monetary Fund.
The Pakistani rupee fell to a new record low as the military intervened to quell violent protests that erupted after former Prime Minister Imran Khan was arrested this week.
The rupee fell 3.3% to a low of $300 per dollar on Thursday, according to the exchange division of Arif Habib Ltd. dollars.
The Pakistani government enlisted the military to help end violent protests after a judge on Wednesday ordered the 70-year-old politician to be detained by the anti-graft agency for eight days.
He was arrested on Tuesday. The turmoil comes as the government negotiates with the International Monetary Fund to restart its $6.5 billion bailout program needed to avoid bankruptcy.
“The pressure had built up after a few months of stability,” said Saleem Amjad, chief executive officer at Link International Exchange Co. in Lahore. “Sentiment turned sour given the political turmoil, the prospect of another slowdown in IMF lending and a fall in remittances.”
The Supreme Court will hear Khan’s appeal against his arrest later Thursday. At least seven people have been killed and dozens more injured in the past two days.
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