Prudent economic polices put Rupee on sustained upward trajectory

ISLAMABAD: Notwithstanding the flood damages, the prudent economic policies introduced by the incumbent finance minister are bearing fruit as Rupee is continuously gaining strength against Dollar for past over-two weeks, making it best-performing currency.
Even on Monday, Pakistan rupee appreciated by Rs 1.96 against the US dollar in the interbank trading and closed at Rs 217.96 against the exchange at Rs219.92 on last trading Day.
The rupee started maintaining winning streak since Federal Minister for Finance and Revenue, Mohammad Ishaq Dar announced his return to Pakistan. Soon after his arrival, Dar declared that Rupee was kept under-value and had committed to go after manipulators to restore the true value of country’s currency, which he said was at below Rs.200.
The strategy adopted by the finance minister went well with the currency market and lifted Rupee from worst-performing in emerging markets in the third week of September 2022 to best-performing currency on last trading day of the previous week (October 7), in just around 18 days.
The otherwise unstable rupee gained 3.9 percent during last week, closing at Rs.219.92 against US Dollar, prompting Arif Habibi Limited to term it best-performing currency.
Meanwhile, Arif Habib Limited has also predicted that exchange rate of country’s currency would come to hover around Rs.200 within a month, citing administrative control, rationalization of imports and Current Account Deficit and selling of stocked dollars in the domestic markets as some reasons for the change.
In an interview with official media outlet, Head of Research at Arif Habib Limited said around Rs2 trillion debt burden was reduced from the country due to appreciation of rupee so far.
The appreciation of dollar has a direct impact on country’s debt position, an official in the finance ministry said, adding the strengthening of exchange rate would reduce debts worth billions of Rupees.
The Finance Minister, Ishaq Dar after assuming the power had expressed the resolve to put the economy on sustainable and inclusive growth path by taking pragmatic steps to resolve bottlenecks to growth.
On Sunday, while addressing a press conference, the minister said his country would not approach Paris Club for rescheduling of debts, saying that the country would manage matters and would pay off liabilities of multilateral lenders on time.
Export promotion is a priority of the incumbent government which has already taken measures in this regard to help balance of payment position. -PNP