Rising dollar and falling rupee exposes Govt, IMF deal
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The Pakistan Economy Watch (PEW) on Friday said rising dollar and falling rupee has exposed the secret deal between government and IMF to depreciate the local currency.
The sliding rupee has also exposed expertise of the economic managers of the incumbent government, it said.
The deal between government and the lender is also evident from the role of SBP which has been reluctant to take concrete steps to stabilise the exchange rate, said Dr Murtaza Mughal, President PEW.
He said that depreciation in the valure of rupee will invite inflation as Pakistan heavily relies on imports. Moreover, it will add to the foreign debt and make life of masses miserable.
Overseas Pakistanis will prefer to send money through hundi as the difference in interbank and open market rate is at unprecedented level, he added.
Dr Murtaza Mughal said that there was no justification in the rapid erosion of rupee as overall economic situation was calm, indicators are as usual and there was not major change in the position of forex reserves.
A check on Dubai-bound flights can expose all the elements involved in flight of capital, hoarding of dollars and turning of black money into white, an evidence of blooming grey economy, he informed.
Exchange rates should not be taken lightly as it is among the most analysed and forecasted indicators in the world. The currency markets are the most liquid in the world with a daily turnover of close to $2 trillion as compare to $ 70 billion on the New York Stock Exchange.
