PESHAWAR: Just a day after the government’s claim that it would not hide behind the IMF, the US dollar hit an all-time high of Rs142 in the interbank market on Friday.
The dollar stood at Rs134 when the market closed on Thursday, and increased by Rs8 in the morning when the market opened. It is widely believed that the sudden massive increase in the dollar rate has happened to fulfil conditions of the IMF as the Pakistan government struggles to bridge the widening current account deficit.
With the latest massive devaluation of the Pakistani rupee, the total debt owed by Pakistan has increased to Rs760 billion. During the last one year, rupee has witnessed devaluation of 36 percent.
Economic experts believe that the devaluation of rupee may unleash another flood of inflation and common man of the country will be the ultimate sufferer. Experts say the rupee devaluation may not stop here and it dollar rate may increase further to Rs150 shortly. The sudden devaluation of rupee has created a panic in the market.
The opposition was quick to criticise the government for dollar surge, saying that it is clear that the government has agreed to the IMF conditions.