The exchange rate is just a parity – a comparison of our economy versus the world. We will always lag behind them unless major reforms are done, which are unlikely. From 2007 to 2020, the rupee depreciated 7% on average every year against the dollar. So expect at least a 5% depreciation from today till the next 10 years. The exchange rate has depreciated in every Govt. The percentage drop is more or less the same as it is directly correlated to our foreign debt levels which have increased always. So regardless of the Govt, it’s all about how much debt is in the last year (election year) of a sitting Govt.
Pakistani Economy is Crumbling
It’s Corona, every single thing happening there in the US is because of Corona. But now USD definitely has to go up because of the vaccine. I am saying the same before celebrating its strength for a few weeks check how much strength the rupee lost during the previous 2 years. Meanwhile, Indian forex reserves are at an all-time high of 560 Billion vs Pakistan’s mere 12 Billion. Enough of cricketing analogies. Enough of throwing debris and nose-plucking on the past Governments. Now, it’s your turn. In 71 years, we have had 11K Billion PKR in loans whereas just in these 7 months, the current PTI government has taken 2500 Billion PKR for loan repayments and rupee devaluation adjustments.
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