Rupee devaluation, raise in discount rate add extra loan of Rs3640b

ISLAMABAD: The Imran Khan government has added $23 billion (Rs3640 billion) in the public debt on account of devaluation and increase in discount rate just to ensure IMF loan of just $6 billion, says Dr Ashfaque Hasan Khan, Pakistan’s eminent economist and Principal and Dean of School of Social Sciences & Humanities at NUST.

Extremely worried on massive devaluation of Pak rupee in one day by Rs5.18 against US dollar, Dr Khan said that because of appreciation of US dollar by Rs5.15 on Wednesday, Pakistan piles up more loan of over Rs500 billion. However, in the open market the value of US dollar surged to Rs162.50 multiplying economic miseries of 200 million countrymen. More importantly price of gold has increased up to Rs81000 per Tola.

However, mentioning about the inter-bank rate of US dollar at Rs160.15 on Wednesday, Dr Khan said, since the PTI government came to power, it has added Rs2500 billion in the public debt on account of devaluation of Pak currency owing to which the debt servicing has increased by Rs75 billion.

He didn’t stop here rather continued, saying that in the wake of increase in discount rate up to 12.25 percent, the incumbent government has also added Rs1117 billion in the public debt. So the debt accumulated, both in the wake of devaluation of Pak currency and raise in discount rate, stands at Rs3640 billion which is equal to $23 billion. ‘It is simply unbelievable,’ Dr Khan said.