The decision is part of the bold and unpopular decisions the coalition government has opted for in view of the increasing pressure after the Imran Khan government was ousted from power…reports Asian Lite News
The Pakistani government has imposed a complete ban on the import of more than three dozen non-essential luxury items as part of an emergency economic plan to stabilise the national economy.
On Thursday, Information and Broadcasting Minister, Maryam Aurangzeb said, “There is an emergency situation and Pakistanis will have to make sacrifices under the economic plan. This will have a quick impact on the country’s foreign reserves.”
The decision is part of the bold and unpopular decisions the coalition government has opted for in view of the increasing pressure after the Imran Khan government was ousted from power and Shehbaz Sharif formed a coalition government with a promise to get Pakistan out of the economic crisis.
Pakistan will have to reduce its dependency on imports to put the country on the path of economic stability and progress, she said, adding that the government has been working to introduce an export-oriented policy, which will benefit local industry and producers, and generate employment, Xinhua news agency reported.
The development came after the Pakistani rupee continued to sink over the past few weeks, hitting a historic low value of 200 against the US dollar in the inter-bank market on Thursday, depreciating 0.81 per cent as compared to that on Wednesday.
The decline of the Pakistani rupee is attributed to the rising import bill, growing current account deficit and depleting foreign exchange reserves, according to economic experts.
The value of the dollar appreciated by Rs 1.81, or 0.91 per cent and was trading at Rs 200.20 at 11 a.m. during intraday trade.
The greenback closed at Rs 198.39 Wednesday, after gaining Rs 2.65 from its closing value of Rs 195.74 on Tuesday.
In the open market, the US dollar already breached the Rs 200-mark two days ago.
Since the new government took power April 11, the greenback has appreciated by Rs 18.09 in the interbank market. In the open market, the foreign currency rose by Rs 15.50 during the same period, Samaa TV reported.
Experts have said the economic and political uncertainty was fuelling the dollar’s rise and hurting the rupee’s value.
The market was looking towards ongoing talks between the International Monetary Fund (IMF) and Pakistan in Qatar.
During the first rounds of talks that concluded Wednesday, Pakistan assured the Fund that it is ready to take tough decisions like revoking the subsidy on fuel and controlling the rising current account deficit.
The talks were being held to resume the $6 billion IMF program for Pakistan with a possibility of extending it by $2 billion.