HomeWorldPakistanExperts foresee new wave of inflation as the rupiah crosses 200k dollar

Experts foresee new wave of inflation as the rupiah crosses 200k dollar

ISLAMABAD: Experts predict new wave of post-US inflation dollar reached an all-time high against rupee when increasing past 200.

According to the Forex Association of Pakistan, dollar trading at Rs 200.60 on Monday, continuing uptrend after crossing 200 on Thursday.

Experts believe that many factors, including governments failure to provide salvation package from the International Monetary Fund (IMF), subsidy on fuel, growing imports and falling exports main causes of depreciation of local currency against in dollar.

During conversation with Xinhua, Syed Shujaat Ahmed, Economist with Islamabad Sustainability Policy Analytical Institute (SDPI) said Pakistan is debt-manageable economy with Huge problem of trade deficit.

“Import Pakistan way more than its export. rising dollar rate means more inflation, as well as many necessities, from basic food to fuel and even raw materials. materials for exports are imported from other countries. With growing exchange rate their prices in local markets will grow,” he said. added.

According to the Pakistan Bureau of Statistics, total export within first eight months of fiscal year of 2022 for $28.855 billion, while imports of goods and services worth $62.131 billion in the same period.

He added what a purchase power of in people is an already becomes weaker due to inflation caused the changing regional situation, the pandemic and other factors. price to travel on foot in basic goods due to devaluation of the local currency will further exacerbate the situation.

Sajid Amin Javed, Deputy Executive Director director with SDPI believes that the devaluation of currency can also give reason for local intermediaries to raise prices of main products for in public.

“Exist practice in country in which, when dollar rate increases, and rise in prices are attested, even sectors that are not directly suffered from it. It might happen this time with in dollar mark crossing of 200 rupees.”

Pakistan also facing serious challenge in its foreign exchange reserves, which had fallen by $115 million by the end of the year. of April, due to the sharp increase in external debt payments and higher current account deficit, official figures from the central bank showed.

Javed added that the situation of the local currency will get better after the country can make a deal with IMF, and then others money lending institutions, including ADB (Asian Development Bank) and the World Bank, as well as friendly countries May also step in to help overcome current account deficit and foreign exchange reserves challenge.

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Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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