Karachi: In 2018, Pakistani rupee devaluation emerged as a major concern for country’s economy.
Rupee devaluation against US dollar was noted at around 25.6% in 2018. However, the currency devaluation is worsened during the last 6 months of 2018.
On December 31, 2018, USD to PKR ratio was RS 139 as compared to Rs110.64 last year. However, it shows the rupee devaluation of 25.6%.
In 2018, government revealed new rules and laws to effectively deal with money laundering. According to sources, be that as it may, the activities did not yield positive outcomes as dollar sneaking proceeded unabated. Also, financial specialists favored interests in dollar over different interests fully expecting fast returns. Couple with this pattern, dollar deposits with the banks expanded to $6.56bn, up $398 million from the $6.162bn in January 2018.
On the other side, the uncertainty over IMF loan also adversely affected the Pakistani currency. tough conditions of IMF bailout package are making Pakistan reluctant to accept the program. However, conditions included the rise in energy prices, complete disclosure of the China financial aid, and to implement more taxes.