Import exchange settlement faces challenges with sharp depreciation of Rupee

Since 2022, Pakistani rupee has constantly depreciated against the US dollar after several rounds of US Fed’s hike on interest rate, and around Jan 26, 2023, the currency has depreciated by nearby 10%. Under such condition, local commodity prices moved up overall and cotton prices also increased, but with the currency depreciation and worries over the exchange settlement credit risks, imported cotton was hard to be into the market. Meanwhile, energy prices increased by nearly 112%, leading to difficult operation of downstream mills.