Over the years, the value of the dollar, in terms of rupees, has been quite unstable. Pakistanis are observing that our government, even with the help of the IMF, the World Bank and wealthy foreign countries, is not able to rectify this problem. A very simple solution would be to allow Pakistani’s to open US dollar savings accounts in banks with the same or higher interest rates than Pakistani bank accounts. But, most foreign currency savings accounts give a measly five per cent interest rate versus a 20-22 per cent rate for saving accounts in rupees.
This means that the volatile dollar problem is largely self-made. The reason for allowing such fluctuation is, in my opinion, profit. Exporters get more orders and higher profits in such conditions, especially agricultural and mineral exporters.
Engr Shahryar Khan Baseer