Former finance minister Ishaq Dar said on Wednesday exchange-rate will improve as soon as Pakistan economy controlled in right direction, to the point where they say it might even happen down up to 160 rupees against United States dollar in several months when “fiscal and monetary policy fixed”.
Dar’s remarks were made during Aaj News show’Fisla Aap Ka with Asma Shirazi” where he said that the historic fall of the rupee was due to the previous government”incompetence”.
“This is their incompetence,” he said in response to a question from Shirazi whether the value of the rupee could improve now that the Pakistan Muslim League-Nawaz (PML-N) over reigns.
During his previous tenure as PML-N earned a reputation for maintaining a strong rupee reportedly much to the annoyance of International Monetary Fund (IMF) and exporters who argued that maintaining an “artificially strong” currency hurts economy in for a long time-run.
However, Dar said dollar cannot be administratively controlled beyond “limited intervention”.
“The dollar cannot be administratively (controlled) – you can intervene in limited way. Economic fundamentals need to be true, inflation must be in control, the budget deficit should be in control, and foreign exchange reserves need be up to the mark.”
To the categorical question of Shirazi, can the rupee strengthen to 160 against in dollarDar said “may”.
– God willing, maybe. But I’ll have to work hard for This is. You will need to fix economic policy. You will need take fiscal and monetary measures, and set economic direction. Income must be increased. One day direction right, dollar can be stabilized.
Answering a question on inflation, which run in double-numbers for months, Dar said government giving “free hands” to the exchange rate was “mother of all troubles.”
“When inflation started rising, they increased the interest rate by attracting” hot money’. When the pandemic came, interest rate and churn decreased. of dollars happened.
Exchange rate was a hot topic in South Asian economy who saw his currency hit a record short last week when it depreciated to 188.18 rupees. against United States dollar. Since then, the ruble has appreciated for four consecutive sessions market responded to central bank measures and clarity on political front after no-confidence vote against Imran Khan at last took place on Saturday night. The rupee closed at 181.82. against in dollar on Wednesday, cumulative gain of 3.5% in four sessions.
Current account deficit
Earlier in the interview, Dar said the previous government It has again brought current account deficit to a high level.
“We left in current the account deficit was about $18 billion. It was high due to capital investments.
“They (Pakistan Tehreek-e-Insaf government) brought it down but what about cost?
“Pakistan economy saw the negative growth for in first time since 1952. how soon when they started to concentrate on their growth current the account deficit began to shoot up also.
“They don’t have any experience. They admitted that we did not plan economic policy.
stay in soon?
When asked if he and PML-N High Representative Nawaz Sharif could come back Pakistan, Dar said, “These reports are correct.”
“A passport falls under a basic human right – you cannot cancel or not renew it. This is a constitutional right.
“My passport with which I entered the UK has been revoked. in 2018. Passport of Nawaz Sharif, who also expired recently, was also not updated. In politics, sometimes we stoop to the point of ignoring basic rights.
“The process of obtaining a passport will take place. I am trying to make an appointment with the doctor in advance, as is Nawaz Sharif. Meanwhile, if the passports and other travel documents are completed, we will arrive back.
“Not one would have thought it would happen three months ago. All this happened thanks to the efforts of Nawaz Sharif and the united opposition.
“The country has come to a situation where this should have happened. It wasn’t done against one Human. We were at a turning point.”
Not-confidence vote
When asked when the consultations began on in no-confidence voteThis question was actively discussed, Dar said that it was in work for in last three months.
“We staged rallies, but did not threaten them. We didn’t say, “resign, or we’ll continue the rallies.” wanted adopt a constitutional and democratic way. we are not want to “make” them quit smoking, and we don’t want to use ‘street politics’. we worked on This for in past 2.5-3 months.
“Is not work in way that the cipher came on March 7th and we filed a motion of no confidence on March 8. We met political parties, supplemented our numbers and brought them on-board. We spoke with the PPS. who we also ready. it was ah big challenge insofar as in pakistan history no-confidence vote never been successful. We have to ensure what we avoid embarrassment of in vote failure.
“The cipher has nothing to do with it,” he said, referring to PTI chairman Imran Khan and his party, claiming the cipher was proof of western conspiracy against him and also motivation behind opposition no-confidence vote in parliament.
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