The fall of the rupee

The rapid depreciation of the Pakistani rupee from Rs180 to Rs200 against the US dollar is not due to the import of cars and other luxury items. It is capital flight triggered by the present political disorder, which is making the rupee lose its value. If a country’s president and prime minister are at loggerheads with each other, no government can work properly. The business community will not trust the regime’s plans and policies. As a result, businesses and investors will withdraw their investment and take their capital to better places. Early elections and import restrictions, though justified, are no solution to the existing crisis and will only aggravate the problem. The authorities in power should help attain political stability and initiate measures to improve the economy.

Abdul Majeed

Islamabad