Pakistani rupee touched new record low against dollar because of weak economic fundamentals and global financial crisis. The rupee was traded at 78.15 rupees to the dollar. Another factor which is causing pressure on rupee is the shortage of dollar from market due to swap operations of the State Bank of Pakistan. The central bank has been buying dollars from the market with a commitment to sell them back in future.
The rupee has shed 21 percent this year largely because of poor management and deteriorating balance of payments positions. I do not see any improvement in this situation in the near future because of apathetic attitude of the government which does not seem to be concerned at all. It is only taking back subsidies on essential items in order to cover losses. This decision has made life miserable for ordinary Pakistanis.
Pakistani rupee touched new record low against dollar because of weak economic fundamentals and global financial crisis. The rupee was traded at 78.15 rupees to the dollar. Another factor which is causing pressure on rupee is the shortage of dollar from market due to swap operations of the State Bank of Pakistan. The central bank has been buying dollars from the market with a commitment to sell them back in future.
The rupee has shed 21 percent this year largely because of poor management and deteriorating balance of payments positions. I do not see any improvement in this situation in the near future because of apathetic attitude of the government which does not seem to be concerned at all. It is only taking back subsidies on essential items in order to cover losses. This decision has made life miserable for ordinary Pakistanis.
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