ISLAMABAD (Eshfak Mughal) :- The Pakistani Rupee depreciated against US Dollar by Rs35 (17 percent) in July 2022, which is the decrease in any month in country’s history.
Pakistan currency was depreciated against US Dollar by Rs35 from Rs 104 to Rs139 during the month of July.
The destabilizing trend in the value of local currency will put pressure on inflation coming days. The prices of imported products including petroleum, wheat, cotton and food items will also increase with same rate. It will push up the inflation rate which is already at the highest level of 37 percent on annual basis during last week, according to an economic expert.
The Pakistan Bureau of Statistics (SBP) has reported on Friday that the weekly inflation has been reached to 37 percent during the last week.
According to an initial estimate of the government, Rs35 increased in US$ against Pakistani Currency has jacked up Rs3500 billion in total stock of the government external loans.
According to the Finance Ministry, the total volume of external loans of federal government excluding liabilities has been reached to $100 billion up to March 2022.
Finance Minister on Sunday said that the Pakistani rupee is under pressure due to different factors including speculations and high import bill of June 2022. The situation will be improved within couple of weeks, he told journalists.
The high decrease in PKR value against US dollar has sent negative impact which is affecting business and economic activities in the country. The current uncertainty in currency is affecting country’s economy.
An economic expert said that the IMF program is the only way to come out from this crisis. The PKR may strengthen against US Dollar after IMF Board meeting which is expected in the last week of the August, he said.