Pakistan has been facing one of the worst currency devaluation in its history right now where the value of dollar has decreased by more than 20% in the last year or so. The last two months have been quite unstable with the pendulum of dollar going left right every now and then. During the last week dollar surged to its highest ever position of Rs. 164.50 which was a record high in Pakistan’s history. The high value of dollar was a setback for the business community as well as for others where the value was being left to be determined by market forces only.
But now it looks as if the dollar is coming back on track where the value of dollar went down by Rs. 2.30 as dollar closed at Rs. 157.75 in interbank market today. The crawling of dollar was a positive sign as the value had increased significantly over the last week leaving a sense of uncertainty in the minds of the investors and consumers. The rupee has been on a free fall with the government letting the dollar decide its own value based on the demand and supply rule and this is one major reason why the value of rupee has depreciated a lot.
The devaluation of rupee also comes at a time when the government is heading to talks with the International Monetary Funds to finalize the bailout package for Pakistan worth $6 billion. While the pendulum has been going on, it will take some time for the rupee to come back to its strong position in which it has been present for years now. PTI has blamed the previous government for artificially holding the value of dollar by artificial means and not allowing the currency to find its value on its own.