Connect with us

Featured

Why is the Rupee Plunging Ahead of Elections in Pakistan?

Published

on

Elections in Pakistan are just a few days away but troubles in Pakistan do not seem to be ending. Amid the highly melodramatic political drama in Pakistan ahead of the elections, the Pakistani currency plummeted on Monday. In comparison to the dollar, the Pakistani Rupee slid more than 4.5%. Pakistani Rupee closed at PKR 128 on Monday as it tumbled right ahead of the elections.  

Pakistan is on the verge of a foreign currency crisis and the new government that comes to power post elections will have no choice but to seek a bailout from the IMF. In the recent months, declining exports and enhanced imports have made the foreign reserves of Pakistan plunge badly. The forex reserves have come down crashing to $9.5 billion hence triggering an economic crisis. This is not even enough to cover two months of imports.

Policymakers in Pakistan have deliberately allowed the Pakistani currency to fall by 20% against the dollar. This approach was adopted to manage the intensifying problem of balance of payments.

The latest slide in Pakistani Rupee came partially after Nawaz Sharif and daughter Maryam appealed their conviction in the corruption case. Both Nawaz Sharif and Maryam are lodged in Lahore jail. They were arrested on their return to Pakistan on July 13 from London after convictions in a corruption case. They have been charged for properties they had no account of. Former ousted PM, Nawaz Sharif, daughter Maryam and son in law have approached the Islamabad Court seeking a reversal of verdict that found them guilty and hence convicted.

Economic experts in Pakistan believe that economy has become an immediate problem that Pakistan needs to address. The new government will need to take tough and decisive measures as per economic experts.   No matter who wins the elections in Pakistan but the new government will face a massive challenge to stabilise the economy of Pakistan which is shaping up pretty bad day by day.

Advertisement
Advertisement

Facebook

FEATURED

S400-VS-F35 S400-VS-F35
Americas3 hours ago

Inside America’s Trillion Dollar Disaster – How The US’ F-35 Jets Emerged From The Ashes?

The United States currently houses the most sought after and probably the most potent fighter jets in the world, the...

TURKEY TURKEY
Featured4 hours ago

Armenia Threatens To Shoot-Down Turkish F-16s With Russian Iskandar Missiles

In a severe escalation of tensions between Armenia and Azerbaijan, Armenian Ministry of Defense reported that an Armenian jet was...

Sargsian-Armenia Sargsian-Armenia
Expert Reviews12 hours ago

Armenia-Azerbaijan Conflict: Why Armenia Needs To Pull-Out From Occupied-Regions Of Azerbaijan: OPED

The Armenia-Azerbaijan Upper-Karabakh conflict was sparked with the open territorial claims of Armenians to Azerbaijan's historical lands, as well as ethnic provocations in...

AMCA-DRDO AMCA-DRDO
Featured13 hours ago

Indian 5th-Gen Aircraft To Be Fast-Tracked As DRDO, French Tech Giant Safran Set To Join Hands

As India looks to build its future fifth-generation fighter within its national boundaries, the country’s Defence Research and Development Organisation...

rafale-jets rafale-jets
Europe14 hours ago

4.5 Gen Rafale Fighter Jets Find A Freakish Challenger In Ageing Italian AV-8B Harriers

With Greece set to receive its Dassault Rafale fighter jets from France, Turkey has also been beefing up its defence...

Capital-of-Israel-Jerusalem Capital-of-Israel-Jerusalem
Featured17 hours ago

How Sworn Enemies Pakistan & Israel Are Supporting Azerbaijan While Armenia Gets Russian & Indian Backing?

The tensions between Azerbaijan and Armenia are at its peak with deadly attacks that shook the Armenian-controlled Karabakh in the...

F-35-INDIA F-35-INDIA
Americas1 day ago

Not F-35 Jets or F-22 Raptors, This Is The World’s 1st Stealth Aircraft & Still The Fastest Ever

The United States along with Russia are front-runners when it comes to devising modern technology and blending it with state-of-the-art...

INDIA-CHINA INDIA-CHINA
Asia Pacific1 day ago

China Could Soon Deploy ‘Unmanned Helicopters’ In Ladakh As Tensions Mount With India

With the diplomatic and military talks in progress between the high ranking officials of New Delhi and Beijing, Indian and...

Capital-of-Israel-Jerusalem Capital-of-Israel-Jerusalem
Featured1 day ago

Three Islamic Countries That May Never Recognize Israel Despite The Acceptance Of Saudi Arabia?

In the wake of the ongoing developments, when clouds of war are hovering over India and China / Pakistan, perhaps...

missile missile
Featured1 day ago

Russian & Israeli Origin Missiles Deployed In Ladakh As India Looks To Keep China At Bay

Amid heightening tensions in Eastern Ladakh with China, India has reportedly deployed BrahMos and Nirbhay cruise missiles along with Akash...

Advertisement