Declining Fortunes

The Pak Rupee enjoyed an extended period of holding its value against the USD till 2017, when it traded at around Rs.105 against the Dollar. Come December 2017, the Rupee began its precipitous fall, which continues to this day with no apparent end in sight. In effect the Pak Rupee has lost over 35 per cent in value against the USD since 2017. This has translated directly into higher input costs for manufacturers, rising inflation levels, and higher debt servicing costs. The expected Export boost is still awaited with no appreciable rise to date, while efforts are underway to control imports and local purchases through higher regulatory duties and taxes. The effect is a rapidly contracting economy, with higher inflationary pressure, unemployment and declining levels of wealth – in a word Pakistan is firmly in a Stagflation phase.

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