Devaluation of Pakistan"s currency

                  Hello friends, I hope you all will be fine and doing good, Why the Pakistani currency is going towards devaluation by passing of every day as one US Dollar is equal to Rs.170 in local currency, this is the highest increase in US Dollar. The reason behind it is shortage of US Dollars in the country, non supply of US Dollars in Afghanistan by the USA and payments by the Government of Pakistan in terms of debt to International Monetary Funds (IMF) and other countries.

            The reason may be so but it is seriously effecting the Pakistan' currency. The State Bank of Pakistan has injected 2.12 billions into the interbank market in the last three months to curb the devaluation of the rupee, but its move has not been successful and the rupee has fallen to an all the time low. The historical devaluation of the rupee shows that expansion polices have to pay the price without addressing the structural economic short comings. The move to inject 1.2 billion into the exchange market is contrary to the policies stated by the SBP, the IMF and the Finance Ministry all of which claim that the rupee is valued by market forces.

            Neither the Ministry of Finance nor the Central Bank itself has denied the SBP's provision of dollars in the market. In response to the question whether the SBP had taken this step with the consent of the Ministry of Finance.

            Despite of the fact that State Bank of Pakistan has provided 1.2 billion US Dollars in the market, the rupee is falling day by day and reach to a historical depreciation of of Rs.170. The rupee has depreciated by 11.51  or 7.28 percent against the dollars since the beginning of the current financial year.

            A lot of can be written in this respect but the important and burning issue is that why devaluation is going on what special measures are being taken by the Government of Pakistan and State Bank of Pakistan, which need very serious attention towards it. Since after the creations of Pakistan, after few years, devaluation of rupee was started and it remained continued for decade but none of the Government of Pakistan has taken serious concern towards this issue and by the passage of time now the currency of the South Asia Region one of the most weakest currency in the region is Pakistan, after Iran who is facing restrictions from USA.

            If someone want to see devaluation of currency of Iran, that is horrible and life of Iranian nation is very difficult inspite of the fact that Iran is member of OPEC Countries which are largest in oil producing and being fifth largest oil producing country is facing devaluation of its currency, thereafter in the South Asia region Pakistan is second country which is facing devaluation of its currency by passage of every day. Now the Indian Currency has become almost double to Pakistan currency which also should be a serious issue for all of us.

        What measures can be taken by the Government of Pakistan to stabilize its currency that is more important but when devaluation was started with Pakistani currency since then no serious steps were taken and from onward now till far away no strictly policy can be expected from Government of Pakistan. The other currencies like Euro, GBP and European Currencies are also very strong against Pakistan currency.