ISLAMABAD: Pakistan’s shaky economy has suffered a major setback. The Pakistani rupee depreciated sharply to close at 200 against the dollar on Thursday. However, given the situation in Pakistan, this was already suspected by economists. Pakistan’s currency has depreciated by about 24.24 per cent since last financial year and it is expected that it will not stop there. This decline will continue.
The condition of Pakistani rupee is bad
Even though Shahbaz Sharif became the PM of Pakistan after Imran Khan, the situation in Pakistan is still bad. Pakistan is now on the verge of bankruptcy. The Pakistani rupee has depreciated to around 200 against the dollar. It is believed that 200 Pakistani rupees will have to be paid against one dollar on Thursday. Along with this, black marketing of dollar is also increasing rapidly in Pakistan, but the government of Pakistan has failed to stop it. Following this situation, the government of Pakistan has imposed strict restrictions on the import of luxurious and non-essential items.
The Pakistani rupee has been depreciating for 13 months
According to a report released by Forex Association of Pakistan (FAP) and Business Recorder Pakistan on Wednesday night, the Pakistani rupee touched 199 against the dollar on Wednesday. It is believed that it will be more than Rs 200 on Thursday. The Pakistani rupee has depreciated by 24.24 per cent against the dollar in the current financial year and has been depreciating for the last 13 months. It may be recalled that on April 10, when the Imran Khan government was ousted by a no-confidence motion, the value of the Pakistani rupee was 182.93 against the dollar. The Pakistani rupee has weakened 7% since then.
Black marketing of dollar increased in Pakistan
According to reports, the Imran Khan government has not even paid the foreign debt installments. This is a big challenge for the new government. Apart from this, the rich people of Pakistan are hoarding dollars. Due to which the black marketing of dollar is also increasing in Pakistan. Pakistan’s Prime Minister Shahbaz Sharif on Monday convened an emergency meeting following the depreciating value of the Pakistani rupee and rising black marketing. Sharif was also joined online by Malik Boston, president of the Exchange Companies Association of Pakistan. Also present were Finance Minister Miftah Ismail as well as Finance Secretary and some financial experts.
The reason behind the appreciation of the Pakistani rupee
In an emergency meeting called due to the continued depreciation of the Pakistani rupee, Bost said the reason for the rupee’s depreciation was the weakening of the rupee due to delays in IMF loans, political instability and excessive borrowing. Boston further said that importers are borrowing more while exporters are borrowing less. As a result, demand for rupee has increased in the interbank market and supply has declined. As a result, the rupee continues to depreciate. He pointed out that the exchange companies were not raising the value of the dollar. Unless the rupee depreciates in the interbank market, the dollar will not depreciate in the open market. A written statement was issued after the meeting stating that imports of luxury cars and cosmetics were banned with immediate effect. The list of those whose imports have been banned could be released on Thursday. In such a scenario, it has become a major challenge for poor Pakistan to keep its economy afloat.
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