Policy, please

The Pakistani rupee has once again started declining against the US dollar. Economists say that the rupee’s decline is a result of structural weaknesses and a balance of payments (BOP) deficit. The gap between exports and imports is also a major reason for this fiasco. Imports include heavy machinery, raw materials, mobile phones, and crude oil. These payments are made in dollars that directly affect the country’s foreign reserves, and if they increase, the economy will not be able to maintain its exchange rate.

The uncontrolled import of luxury items, which is financed through borrowings, is a path to national economic suicide. The nation is clearly living beyond its means. The situation is a wakeup call for the government that laid so much stress on austerity. It should devise solid economic policies to bring down the swelling import bill and attract foreign direct investments to ensure the inflow of dollars so that the currency recovers its previous values.

Jhangir Shah Kakar

Zhob