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Monday, February 6, 2023
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EditorialThree rates of dollar

Three rates of dollar

After falling by $294 million on Friday, the State Bank of Pakistan’s protected foreign exchange holdings were only at $5.8 billion. The amount of foreign reservoirs is at its lowest point in the previous eight years. Under these circumstances, it appears Pakistan will be in serious problems after paying the January payment of foreign debts. As of right now, the economy is on the verge of collapse. The dollar has almost completely disappeared from the open market during the past two months, giving rise to the grey market, where it is now trading for between Rs 260 and Rs 270 per dollar compared to the interbank rate of Rs 226. People connected to local exchange companies claim that the cause of everything is the illegal export of US dollars to Iran and Afghanistan. Despite the fact that this situation is based on reality or at least appears to be based on reality, Minister of State for Finance Dr Ayesha Ghos Pasha has made the optimistic prediction that good things would happen in this area over the next few days. She ruled out the danger of the country going bankrupt on Thursday before the Senate Standing Committee on Finance and afterwards to the media, claiming that foreign exchange reserves were on the way and that foreign investment will start in January. The minister claims that talks to collect $3 billion from Saudi Arabia are currently in place, that relations with China are also moving forward, and that communication with the IMF has also been re-established. January loan payments are being refunded. It is possible that given current trends, in which black marketeers are increasingly active and see stocking up on dollars as an alluring “investment,” given the dollar’s appreciation against the rupee. The dollar rate in the country in the first half of this year has been steadily declining since the end of 2019 when it began to soar beyond Rs125. The value of the US dollar exceeded Rs260. As soon as the PDM coalition government assumed office, it was able to reduce it on its own to Rs212. Ishaq Dar, the finance minister, had hoped to lower it to under Rs200, but things appear to be rapidly shifting at the moment. Even though the government is working to bring in foreign currency, dollars are still being smuggled out of the country. People are currently having a lot of trouble paying for travel, medical care, education, and other necessities as a result of the three-dollar rates that are currently in effect on the foreign exchange market. Of course, the government has all the channels via which the facts may be discovered. How is this happening, or are anti-national groups working behind it as a result of which the economy has not been able to handle it? Aren’t the stringent IMF requirements and the worsening situations of the average person as a result of inflation just links in the same chain? The government needs to immediately speed up work on reforms because the current and upcoming periods will be crucial for economic growth, which depends on foreign investment, Additionally, it is critical to provide incentives for Pakistanis living abroad to invest more in their country of origin. The economy will remain poor and inflation will increase if nothing changes and everything is done temporarily.

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