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Dwindling Pak rupee

Dwindling Pak rupee

Pakistani rupee is under pressure again, losing value against US dollar in inter-bank and open markets day by day. Once upon a time, rupee was attached with UK pound and all the payments used to be made in pound sterling, but was shifted to dollar in early 70s. Rupee had never been valueless even during the united Pakistan despite a long and tyrant military regime, economic woes and political unrest. May be the money lords were not born yet or were not powerful to manipulate the currency market in their favour.Now they are active, functional and working in full swing to batter Pakistani rupee for vested interests as they have done in 90s.

Money value has strong link with economy. Better the economy, stronger the currency. In 80s, Pakistani rupee was equal to four yen. Now yen is strong and rupee is melting. It is the job of policymakers to streamline economy with fresh ideas, but if they are just carrying through the service period in routine –by enjoying salaries and perks –economy will crumble and so will be the currency. The government policymakers now must wake up and realise their duties and obligations and must understand modern economic trends. Containing the strengthening of dollar with borrowed money and other cosmetic steps will not serve any purpose. There is a need to strengthen economy and induce the world business tycoons to avail investment opportunities in Pakistan.

US dollar strengthened 30 paisa to reach Rs 102.5 in inter-bank and Rs 102.9 in open market. That is the condition of Pakistani rupee right now. The downward trend of the Pakistani rupee has been continuing since Pakistan Tehreek-e-Insaf chief Imran Khan and Pakistan Awami Tehreek chief Dr Tahirul Qadri took out long marches and are holding sit-ins in the federal capital.

The government, on the other hand, is trying to use delaying tactics and is practically not in a mood to negotiate with the protesting parties. It is trying to dump sit-ins in Red Zone, but this strategy can backfire. The nation is waiting for a solution to the problem as sit-ins are affecting all the businesses in the country. There should be no rigidness in politics and all the parties concerned must find an early solution to the political impasse.

Meanwhile, thousands of Pakistani are going for hajj and they need dollars while Pakistan has to pay two installments to the International Monetary Fund – one $57 million and another of $147 million — under the standby arrangement facility. However, the government should come forward with an early plan to salvage rupee from further dwindling.