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The Rising Tide of Dollar

The Rising Tide of Dollar

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Yesterday the Dollar’s value appreciated by 9.75, raising it to an unprecedented high of 134, in interbank exchange. In the open market it stands at 137 against the Pakistani rupee. This sudden and drastic rise means that the Pakistani economy faces even more hardships on the state and business level. With the rise of the dollar, the prices of petrol, sugar and oil will also rise among other things. Transport of all goods now adds an additional cost which means Pakistan will import goods at a higher value in rupees. This will also raise the National debt considerably in terms of rupees: even though the debt in dollar remains the same, the government will have to pay more in the local currency, which stands depreciated.

Some experts have identified the lack of economic certainty and continuous IMF dependency to be the reason behind this, as after much resistance the PTI government prepares for another IMF loan.

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Balach Khan

Balach Khan is the Urdu editor at ProperGaanda and writes articles about Politics, Entertainment and Social Issues. Twitter: @alreadytakenwas

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