US dollar has touched the record high at Rs. 144 against Pakistani rupee in the interbank market. The Pakistani currency lost 8 rupees against dollar in a single trading day. The main reason of this fall is the persistent balance of payment crisis and falling foreign exchange reserves.
It seems that the PTI government has accepted the IMF condition to further devalue the rupee against dollar. Some experts are expecting that rupee might touch historic low of Rs150 against dollar.
This devaluation of eight rupees in single day, swelled the foreign loans of Pakistan nearly $6 billion (Rs. 760 billions).The development comes a day after Pakistan Tehreek e Insaf government presented its 100 day performance. The government celebrated its successes and claimed to turnaround the economy.
The devaluation is set to cause an increase in inflation and interest rate, effecting investment in the country. The prices of utilities, food and consumer goods will further go up. The high inflation will hurt the poor people badly. Import items will become more expensive.
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16 November, 2019