Pakistan being a developing country its
economy gets affected by the rise and fall of Pakistani currency against
dollar. During the time of Prime Minister Shaukat Aziz in power dollar
was stable for 60 rupee. When the government changed Pakistani currency
immediately fell seven rupee against dollar. Since then Pakistani currency is
falling and nowadays the value is 104 and the speculation is that it will keep
on falling. The devaluation of currency has a direct impact on local Pakistani traders. Foreign trade such as eatable
oil, raw materials, petroleum and electronics gets expensive. This creates
problems for the traders. Pakistan imports 80 percent of petroleum for its
consumption. According to the Former Finance Minister Dr. Salman Shah, Pakistan
spends 13 billion dollar on imports of crude oil and eatable oil.
Here’s a graph showing decrease in value of a Pak Rupee against
U.S Dollar from 2009-2013:
According to the specialists dollar and gold prices are
compared in the world market. European countries which includes,Italy, France
are now having trouble with their debt that’s why the investors has lost
confidence in these countries. The investorsare investing in gold and now in
dollars. The increase in the dollar value in the world market also has an
affect against Pakistani currency.
Government policies also result in devaluation of the
currency. Printing more money has become a common practice, the reason
government is giving that they are following monetary policy it will increase
job opportunity. But it is resulting in devaluation of rupee and no new jobs
are being created.
Pakistan loan is another reason. IMF have a big hand in
it, they force countries to devaluate their currencies against the dollar so
that they can spend less and get more in that country.. maximizing the profit –
pure greed. Recently government has accepted all IMF demands and it will further
devaluate rupee. In next few months one dollar will be equal to 110 rupee. This
was mentioned in Urdu Jang newspaper.
Pakistani currency
will continue to devaluate unless government takes some action.
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