Experts say this massive devaluation of currency under the PTI government fuelled inflationary pressures, adding that two major factors contributed to the price hike….reports Asian Lite News
The value of the Pakistani rupee has fallen by 30.5 per cent against the US dollar over the last three years and four months under the Imran Khan-led government of Pakistan Tehreek-e-Insaf (PTI).
The rupee witnessed massive depreciation from Rs 123 against the US dollar in August 2018 to Rs 177 against the US dollar in December 2021, a decline of 30.5 per cent over the last 40 months, The News reported.
This makes it one of highest devaluations of the currency in the country’s history. The only other higher devaluation occurred when Dhaka fell and Pakistan’s currency was devalued by 58 per cent from Rs 4.60 to Rs 11.10 against the US dollar in 1971-72, the report said.
Experts say this massive devaluation of currency under the PTI government fuelled inflationary pressures, adding that two major factors contributed to the price hike.
First, the prices of food and commodities as well as fuel prices skyrocketed in the international market, and second, the depreciation of the exchange rate by 30.5 per cent also led to higher inflation.
An analysis of regional currencies versus the US dollar shows that the Pakistani currency experienced massive depreciation compared to others, the report said.
The Indian rupee stood at 75.39 against a US dollar. The Indian rupee stood at Rs 70.09 against the US dollar in 2018, Rs 73.66 in December 2019, Rs 74.53 in March 2020 and Rs 74.57 in April 2021.
In the case of Bangladesh, the Bangladeshi Taka stood at 85.76 against the US dollar and it hovered around 84 to 85.9 on an average over the last two years.
Meanwhile, the Pakistani rupee continued to fall in value and stood at Rs 177 against a US dollar in December 2021. It depreciated sharply from Rs 123 to Rs 177 against a dollar over the last three years and four months.