After the historic increase in the value of the dollar on Thursday in Pakistan, the country’s external debt (loan) increased by two thousand Half a thousand billion rupees.
After the market opened, the undisclosed “ceiling” imposed on the value of the dollar in the interbank market was also lifted on Thursday, which led to an extraordinary rise in the value of the dollar and the dollar reached 255 rupees during the trading period. It was 230.89 rupees the previous day i.e. an increase of more than 24 rupees was recorded in the value of the dollar in a single day.
After the market opened, the undisclosed “ceiling” imposed on the value of the dollar in the interbank market was also lifted on Thursday, which led to an extraordinary rise in the value of the dollar and the dollar reached 255 rupees during the trading period. It was 230.89 rupees the previous day i.e. an increase of more than 24 rupees was recorded in the value of the dollar in a single day.
An increase in external debt
The rise in the value of the dollar also has a significant impact on the value of Pakistan’s external debt, which is worth about $130 billion. Economic analysts believe that the dollar will be worth at least 250 rupees i.e. 250 rupees as against 230.89 rupees. According to calculations, foreign loans increased by Two thousand 500 crore rupees in one day. And if the value of the dollar is 255 rupees, then the increase in the value of the external debt will reach 3 thousand billion rupees.
High prices of imported goods
Pakistan imports up to 80 percent of its raw materials, the price of which will rise due to the appreciation of the dollar, and as a result the cost of goods manufactured from these raw materials will also rise. Also, the prices of imported products will rise proportionately if the value of the dollar increases.
Is the right decision to leave the dollar open?
Economists agree that the dollar should be left open based on market demand and supply. Also a prerequisite of the IMF is the requirement that the value of the dollar be in accordance with the market mechanism, but the government must not allow inter-bank exchange and the open market. The price of the dollar was frozen, as a result of which the black market appeared and all transactions began to take place in the black. Experts say there is no harm in making the dollar dependent on the market. There will be an extraordinary situation for half a day, and then the dollar will start trading at the original rate. will
