Speculative buying of the dollar is causing the price of the dollar to go up, however, the Pakistani Rupee will recover as soon as the funds start inflowing from the International Monetary Fund (IMF) and other friendly countries.
This was revealed by official sources from the Ministry of Finance while talking to ProPakistani.
The officials were of the opinion that the dollar rate is determined based on the system of supply and demand in the market and due to over-buying of the dollar the rates were higher, devaluing the rupee.
Commenting on the debate regarding debt increase due to devaluation of the rupee, they said that any increase in loans due to dollar appreciation is temporary and the dollar rate will improve soon as the market stabilizes. They further explained that it was wrong to claim that Pakistan’s debts had increased by Rs. 5 trillion as repayment of loans covers a long period of time.
According to sources, the economy was moving towards stability and with the inflow of funds from different sources, the dollar would also come down. This would also improve the figures as economic indexes are related to the price of the dollar. They added that the falling dollar rate would lower the volume of loans in the future.
They opined that the stability in the exchange rate is linked to political stability and the recent decline in the value of the rupee was an example of that.
Previously, Federal Minister of Finance and Revenue, Miftah Ismail, had also blamed the political situation for the devaluation of the Pakistani Rupee in a recent press conference. However, he was hopeful that the economy was moving towards stability and that the price of the dollar would decline soon.
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