Today: 11 July 2025
15 November 2021
2 mins read

Plummeting Pakistani rupee reveals deeper economic problems

The Pakistani rupee on Friday closed at an all-time low of 175.73 to a US dollar. The rupee has lost 13.34 per cent and 10.35 per cent since May 14 and July 1, respectively….reports Asian Lite News

Pakistan rupee has recorded a fall against the US dollar in the inter-bank currency market for months, a rising concern for the Imran Khan government indicating that the country is facing a deeper economic problem, reported local media.

Currency depreciation is not something to be worried about, in normal conditions. Currencies constantly adjust their price downwards in response to high inflation and other economic factors, reported Dawn.

This helps a country’s exports stay competitive in international markets, boosts domestic productivity and grows the economy. But such a steep fall in the value of a currency as witnessed in the case of the rupee of late, reveals far deeper economic problems: low productivity, narrow export range, high import dependency, galloping price inflation etc, the newspaper added.

The Pakistani rupee on Friday closed at an all-time low of 175.73 to a US dollar. The rupee has lost 13.34 per cent and 10.35 per cent since May 14 and July 1, respectively.

Pic credits IANS

Despite the State Bank of Pakistan’s curbs on imports and the purchase of the greenback from the open market, the rupee has been declining against the US dollar.

Even the delays IMF loan programme’s resumption is not helping the nation.

Pakistan’s foreign exchange reserves have also declined to USD 17.3bn from USD 19.2bn in early October.

According to Dawn, with no signs of help from anywhere, the rupee’s downward trajectory is unlikely to reverse for now. Plans to fetch dollars from the international bond markets hinge on its ability to strike a deal with the IMF. Until (borrowed) dollars arrive from somewhere, the government will continue to depend on remittances to meet its current account deficit and slow down the pace of the haemorrhaging of reserves built through past borrowings.

The country’s exchange rate is the first line of defence against the external shocks and for how long it can sustain against the relentless pressure on it is uncertain. (ANI)

ALSO READ: Pakistan in a fix over ties with China

Previous Story

Pak releases 20 Indian fishermen from Karachi prison

Next Story

7 hurt as blast hits police vehicle in Quetta

Latest from -Top News

Masdar powers ahead in UK

€15 billion clean energy alliance powers ahead with East Anglia THREE investment and Baltic Eagle energisation….reports Asian Lite News Masdar, the UAE-based global clean energy powerhouse, and Iberdrola, one of the world’s

Indian Doctor Gets Top Sharjah Award

The award was presented by His Highness Sheikh Abdullah bin Salem bin Sultan Al Qasimi, Deputy Ruler of Sharjah. In a moment of immense pride for the Indian diaspora, renowned paediatrician-turned-entrepreneur Dr.

Peace talks in the desert

President H.H. Sheikh Mohamed reiterated the UAE’s unwavering support for initiatives aimed at fostering sustainable peace, dialogue, and development in the South Caucasus. He also applauded the willingness of the Armenian and

World’s energy thirst to grow: OPEC

UAE sticks to 5 million bpd oil output goal as OPEC launches new World Oil Outlook at Vienna seminar…reports Asian Lite News Haitham Al Ghais, Secretary-General of the Organisation of the Petroleum

Red Sea Warzone

Iran-backed rebels intensify maritime assaults in support of Gaza; US and EU condemn abductions, Israel intercepts missile….reports Asian Lite News The Iran-aligned Houthi rebels have stepped up their maritime offensive in the
Go toTop

Don't Miss

Pak’s Jamaat-i-Islami holds protest against gas outages

Kasuri said the country’s Prime Minister Imran Khan would talk

Suicide Blast at Pak Army Checkpost Kills 23 Soldiers

On November 3, a bomb blast targeted police personnel in