Deputy Prime Minister and Foreign Minister Ishaq Dar has strongly voiced his feelings against supporters of a free-floating exchange rate and said the Pakistani rupee (PKR) should be at Rs. 235-240/$ today, based on Pakistan’s Real Effective Exchange Rate (REER).
Speaking at a seminar by the Pakistan-China Institute, Dar argued that devaluing the rupee harms 92 percent of the economy that does not participate in exports which worsens inflation and economic instability.
Dar denied the concept that currency depreciation boosts exports given Pakistan’s lack of exportable surplus. He also mentioned the disparity between Pakistan’s Consumer Price Index (CPI)-based inflation of 6.9 percent and a policy rate of 17.5 percent. He said the next Monetary Policy Committee (MPC) meeting could lower this rate gap as no rationale supports the current levels.
Dar reaffirmed his past beliefs that Pakistan would not default while its debt-to-GDP ratio was comparatively lower than that of the US, UK, and Japan.
The former finance minister addressed economists in attendance, including Dr. Ishrat Hussain, a supporter of the free-float approach, reiterating his own stance in favor of a stable exchange rate. He added that depreciation has only worsened inflation over recent years and suggested Pakistan look to China’s economic strategies as a model for development and stability.
Follow ProPakistani on Google News & scroll through your favourite content faster!
Support independent journalism
If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.
If he can bring it to 235 rs then why not bring it to 50rs.
First of all why did it jump from 150 rs to 280 rs in the PMLN (PDM) governement since they took over from PTI goverenment.
He is an asshole talking rubbishly.
Correct you facts before worshiping pti like pmln supporters do with no brain at all. Rupee started depreciating from may of 2021 due to bad policies of pti and keep depreciating during pmln until they artificially start managing the usd. Both of the govts performed very poorly and failed to took logical and reasonable steps.
so a YOUTHIA thinks that PTI could take on every challenge that too without even a permanent finance minister in their team. laughable!
Who mentioned youthia or patwari kut@s ? ???
Dollar rate increased from 80 to 180 under dar . Then to 200 plus under dar as well . He was drunk in a dinner crying about imf and then had to go apologise to imf for his actions.
Lu bhaiyaaa jeee.
If this happens we will reach moon 🌚!
😂
Maaf kartay bhai, tu nay pehlay bhi 99 par lana tha lekin 300 par pohancha diya tha
ملک چل ہی خواہشات
Wants
پر رہا ہے۔
Currency depreciation is a tricky step when supports from allies get derailed. The geopolitics is blamed partly as a policy.
If we want an analysis with Turkey Egypt and Pakistan since 2012 we will notice that Turkey depreciated Lira by 1170 pct, while Egypt around 590 pct and Pakistan 275 pct.
We stand must better despite of Arab support to Egypt and NATO support to Turkey.
Once we find good numbers of lenders our reserve would become better and gradual appreciation of Rupee would benefit the economy, given the advent of BRICS.
Let s not play blame game. But keep positive mindset… inshaAllah.
He attempted a similar strategy when the USD was at PKR220. His goal was to bring it below PKR200, but in the process, it exceeded PKR300.
May Allah protect us from Ishaq Dar and his policies. 🤲
May Allah protect us from Dar and his policies 🙏
It was under dar govt that dollar reached 100 rs from 80 rs .
Then under him it reached 200 as well
Then under him it reached 300 as well
He never delivers . He talks and then runs away back to uk like a good doggy