Pakistani currency

Pakistani currency:

Islamabad:Pakistani currency has experienced a considerable decline compared to the US dollar to other regional currencies like the Indian Rupee and Bangladeshi Taka.

As reported by local media, the Pakistani Rupee’s worth against the dollar US dollar has dropped by 30.5 percent during the Imran Khan administration.

This makes it one of the most significant devaluations of currency in the country’s history.

The Rupee saw a dramatic decline of Rs. 123 against the US dollar as of August in 2018 to 177 in comparison to the US dollar by the end of December in 2021. This is an increase of 30.5 percent over the past 40 months, said The News International.

The Pakistani publication also stated that the only other devaluation was in 1971 when Dhaka dropped, and Pakistan’s currency was devalued 58 % from 4.60 to 11.10 concerning the US dollar between 1971 and 1972.

According to independent economists, the devaluation that has occurred recently to the currency was imposed by the IMF by previous decisions, who said this has nothing to do with macroeconomic principles.

There was a total breakdown of economic policymaking, as Pakistan’s fiscal policy was subordinate to exchange rate and monetary policies, according to former financial adviser Dr. Ashfaque Hassan Khan.

In announcing that the tightening of monetary policy and depreciation of exchange rates led to increased inflation, higher public debt, and debt service, he said that empirical evidence demonstrated that the one percent tightening in monetary policy increased the pressure on inflation by 1.3 percent in the instance of Pakistan.

Pakistani currency has seen massive depreciation compared to the US dollar when compared with other regional currencies, including the Indian Rupee and Bangladeshi Taka.

A few studies by economists show that inflation is 11.5 percent every month. About two percent of which is due to depreciation in an exchange rate as per The News International.