Dollar Rates Rising Against Rupee As Political Conditions Go Worse In Pakistan
Just a few days ago PMLN (Pakistan Muslim League Nawaz) was celebrating and its officials were pretty happy to see the dollar going down against Pakistan rupee but this celebration didn't last long. The political conditions in Pakistan are not favorable for the economy and thus the rupee is going down in its value against dollar. The recent developments in the inter-bank market showed a huge upward movement in the price of the dollar against rupee on Monday. There was a rise of 63 paisas in the value of dollar against Pakistani rupee. This makes the current dollar rate in Pakistan 103.30.
The current political instability and overall situation in Pakistan has affected the KSE (Karachi Stock Exchange) as well as the market saw a big decline in points right in the morning session. The decline of 220 points in the KSE brought it to 28,650 as the trading began.
Even though the finance experts had predicted the strengthening of rupee against dollar just a few days ago, the situation seems quite the opposite now. The blame has been put on the shoulders of PTI and PAT, the two political parties that are protesting against the government in Islamabad right in front of the parliament house. The rupee is expected to go down further looking at the worsening condition in Islamabad.
Just at the beginning of August the government took a bold step of locking down the province of Punjab in order to forestall the movement of any processions and instigation of protests by the supporters of PTI and PAT. This resulted in huge economic losses that are tangible in nature.
Ishaq Dar, the finance minister, showed his grievance at the Azadi March and Inqilab protests by quoting a figure of 450bn rupees as loss caused to the economy due to the protests from Imran Khan and Tahir ul Qadri supporters. These were just the tangible losses but the intangible losses are thought of as being even bigger than these by business experts in the country. Not to mention the sudden hold of reviews from IMF that agreed to give Pakistan $6.7bn of loan to start the development projects over a course of few weeks.
The IMF is currently waiting for the political conditions in Pakistan to take a predictable turn so it can continue with the transfer of the loan to the government. However, not much good is being said about the economy of the country taking into account the current political conundrum existent in the country at present.
The recent statements released by the political leaders of the country such as Altaf Hussain and Shaikh Rasheed can be even more important in bringing the economy of the country down. Both the leaders have predicted the coming 24 hours to be extremely critical for Pakistan. Altaf Hussain believes that the next few days are coming with bloodshed and violence.
Where the economy of the country goes depends directly on the political conditions of Pakistan and the prime minister and Imran Khan are the main roles in Pakistan's today's conditions. The rising price of the dollar is going to become the biggest hindrance in the imports of Pakistan.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.