Continuous loss of Pakistani rupee’s value against the US dollar is going on in the country. At the end of business on Wednesday, the dollar in the interbank market, reached near triple century, marking the highest level of the dollar in the country’s history. On the other hand, the government claims that after reaching a new agreement with the IMF (International Monetary Fund) for a loan, Pakistan has seen a significant influx of external funds, and in July alone, the country received a loan and assistance of $2.89 billion from foreign sources.
It is the unfortunate reality of today’s unipolar world that its predominant, particularly the American economic heartbeat, is so intricately tied to the US dollar that even a minor fluctuation in the dollar’s value sends shockwaves to the entire economy. Until the stability of Pakistani Rupee against the US dollar, the country’s economy cannot be established and every step will be wasted.
In contrast, Pakistan’s debt, interest, mismanagement, and dishonesty have left indelible marks on the fragile economy. The unchecked and “uncontrollable” nature of the dollar can have devastating consequences. Every citizen of the country can have a fairly accurate estimation of the negative impacts on their daily lives, as they suffer day in and day out.
When did the economic downfall begin and who is responsible for it? Despite this debate, the fact remains that this is the third government after 2018 that is facing the challenge of navigating the path of the country’s economy while nursing the wounds of a deteriorating economy. The first term of this government sacrificed itself in trying to save the economy from the floods of destruction. It was evident that inexperienced individuals couldn’t lead this battle, and it had become clear that the economy couldn’t be stabilized under their leadership.
Thus, the confidence and acceptance that were initially placed in the first government were shifted to experienced individuals, accompanied by lofty aspirations. However, the PDM government not only failed miserably in stabilizing the economy over the past fifteen months, but at every step, it pushed the economy further into the abyss of destruction.
The consequences of the uncontrollable nature of the dollar can be gauged from the fact that even a minor increase of a single penny in its value results in billions of rupees added to both the country’s internal and external debts and their associated interest. Petrol becomes more expensive, the limits of the country’s income are constrained, and the economy’s screams resound within its borders. The exports become useless, as they are not strong enough to compete with the dollar’s new position.
It is clear that under the leadership of Shehbaz Sharif, the PML-N’s president’s collaborative efforts failed miserably in stabilizing the dollar rate throughout his tenure as PM.
During this period, it was felt that maintaining the dollar’s stability was an extremely sensitive and challenging task. Despite reports that neighboring countries are smuggling dollars, no attention was given to any proposal to counter this trend, eliminate the illegal and unethical hoarding of dollars, or stabilize the dollar through expert interventions.
The entire focus of Shehbaz Sharif’s government was on obtaining “emergency loans” by depleting the pockets of close friends like Saudi Arabia, the United Arab Emirates, and China, so that the treasury and economy could be artificially resuscitated by dollars.
In roughly one and a half years, this artificial and temporary bond of Shehbaz’s government with “life support” gave way, and although the government has lightened its burden, the noose of the dollar’s economic trap is firmly around the neck of the nation. There is no guarantee to save the economy from utter collapse and complete ruin.
The need of the hour demands practical measures, understanding the delicate, complex, sensitive, and grave nature of the issue by the govt, in order to either bring the dollar down or at least keep it stable at one position. The disastrous implications of the uncontrollable dollar highlight the fact that every possible wisdom should be applied to avoid these large-scale devastations
