Federal Finance Minister Senator Ishaq Dar said on Wednesday that the market value of the rupee against the US dollar is currently Rs 223.94 but according to him the real value of one US dollar should be less than Rs 200.
Dar explained that the main reason for the rupee falling to its all-time low was political instability in the country. At its lowest level since the end of July, the rupee had hit an all-time low of Rs 239.94.
While the rupee rallied in the weeks following the release of a $1.16 billion International Monetary Fund (IMF) tranche, it again hit alarming lows in September, just before Dar’s return.
Dar told that the rupee started to strengthen even when he was aboard Prime Minister Shehbaz Sharif’s flight to Pakistan.
He added that since Monday (September 26), the value of the dollar has decreased by about 15.71 rupees.
He claimed that the dollar could fall to Rs 24 against the rupee in 24 days.
In a statement that will reassure the global lender, Dar said he believes in keeping the exchange rate subject to market forces and it is the State Bank of Pakistan’s responsibility to monitor it.
Economic Pressure
Talking about the economic pressures and priorities of the current administration, Dar outlined the priority of tackling inflation in the country.
He said that we should bring the inflation rate down to 12% to 14%. Inflation is currently at an all-time high of over 20 percent.
But a major aspect of controlling inflation, the prices of petroleum products, appears to be a bridge away, at least for now.
Dar admitted that it is binding on the government to comply with the terms and conditions set by the IMF and that the government will have to impose a levy of Rs 5 on petroleum products this month.
