There is an ongoing Pakistani Rupee devaluation and it continues, The US dollar surged to record high against Rupee in the interbank market on Monday reaching Rs121.
According to Dawn, the Rupee has been devalued four times in one year, however, the finance minister said earlier that he did not see any further devaluation of the Rupee. His speculations and estimations all proved wrong with the new hike in dollar rates. The Dollar rate kept changing between Rs119.8 to Rs121.
Experts say the current account increasing deficit and increasing imports have led this devaluation and surge in dollar price, increasing price of the dollar would create economic problems for Pakistan.
During March, US dollar jumped Rs4.93 and reached Rs115.50 in the interbank market while earlier it surged to Rs116 in the open market.
According to Dawn, the Rupee devaluation is threatening to the economy before the general elections July 25, the country’s $300 billion economy could see further damages, the dwindling foreign reserves and widening current account deficit has created the need for going back to IMF for loans for the second time since 2013.
The economists say the current interim government might be forced to go to IMF ahead of the general elections. The caretaker government should take bold measures to curb imports and push exports in order to control the situation but the government is not doing anything in this regard said, Economist Ashfaq Ahmed Khan.
According to Pakistan Today, there is no surprise that Rupee is devalued again as many experts believe that Rupee can go through further devaluation, the central bank has devalued Rupee by 3.6 percent which can surge to 5 percent according to experts Dr Ashfaq Khan and Dr Qaisar Bengali.