Rupee has depreciated by 5% against the dollar and has reached Rs 142 in the inter-bank market. As the State Bank of Pakistan has allowed the rupee to depreciate further by 5%, it is apparent that the action of the government is aligned with the International Monetary Fund (IMF) demands.
From December 2017, the rupee has devalued against the dollar by almost 27%. On Thursday the trading closed at Rs 133.99 in the inter-bank market and on Friday it has reached Rs 142.
The State Minister for Revenue Hammad Azhar revealed in November that the rupee has devalued by 7.7% in the Pakistan Tehreek-e-Insaf (PTI) government’s initial months.
Must read: Pak Rupee Hits Record Low Against the Dollar
However, on Thursday the rupee strengthened slightly against the dollar as it reached Rs 133.91/Rs 134.1 in the inter-bank market compared to the close on Wednesday of Rs 133.92/Rs 134.1. Also earlier when Saudi Arabia agreed to give a $6-billion bailout package to the State Bank of Pakistan, the rupee strengthened a bit. But now again it has gone down.
It is pertinent to mention here that the rupee devaluation will have negative impact on other industries as well. Petrol prices might increase after the devaluation of rupee, automakers can also increase their car prices following rupee devaluation, as seen in the past.