Pakistani rupee hit yet another low on May 29 and traded as high as Rs93.05 to a US dollar in the inter-bank market. It traded even higher, at Rs94, in the open market that day. There seems to be no end to this negative trend in rupee’s value erosion. This is resulting in hyperinflation, making the common man’s life terribly difficult. The quality of a country’s economy is reflected in its currency value. Ours is a very badly managed economy. The trade and current accounts are dangerously deficit yet we never hear anything from the honourable trade minister or the finance minister. Even the prime minister never showed any concern on the depreciating rupee value. Does he even understand the serious consequences of a continued value erosion of our currency? But their indifference is understandable, for the rising inflation, which is making the life of the majority of people in our country even more miserable, does not affect the ruling class at all.
Now that the respectable governor of the State Bank of Pakistan has also given a mayday call in an interview to a foreign newspaper, the government must take his warning – that the foreign reserve will nosedive in the first half of this fiscal year to $8 billion – seriously. If the for-ex reserves really go down to $8 billion, this may damage the economy severely. The economic managers of the country must come up with a concrete plan to rescue the country from the looming economic disaster which can happen anytime now due to the fast depreciating Pakistani rupee.
Ejaz Ahmad Magoon
Lahore, June 4.