The rupee debacle

The State Bank has indicated that the rupee can be further devaluated in the coming days. The incumbent government is still uncertain about whether it should go for an IMF package – the financial institution has imposed tough conditions including the further rupee devaluation.

Instead of helping the government raise exports, the devaluation has resulted in high inflation. With billions of dollars coming from China and Saudi Arabia, there is no doubt that foreign exchange reserves will increase significantly, then why is the rupee not being strengthened?

Dr Najeeb A Khan

Islamabad