All praises to God that despite the harsh pandemic times, Pakistan is not only growing but moving forward on the path of development. Regardless of the limited resources, the country has refused to retreat and surrender to the economic crises which have engulfed the entire world under its shadow. The economy of Pakistan is getting better day by day. The rapidly descending rates of the dollar before the rupee are narrating a story of a brilliant strategy and skilled leadership which is leading the country in a better direction.
Pakistani Rupee Has Gained the Title of the Third Best Asian Currency
The Pakistani rupee has become the third best-performing currency in Asia after hitting an almost eight months high at Rs.158.91 against the US Dollar in the interbank market on Monday.
Pakistan has become the net importer of wheat, sugar, and cotton this year and the experts say that this development may help to curb inflation and improve supplies. Earlier, a shortfall of agricultural commodities caused a sudden upsurge in their prices.
In the latest development of Rs 0.18 on Monday, the rupee has snowballed Rs.9.25 or 5.65% over the past 11 weeks after touching an all-time low of Rs168.43 on August 26.
“Pakistani rupee entered the list of best-performing currencies in Asia, appreciating by 3.1% against the US dollar since October 1, 2020, thereby securing the position of third best-performing currency in Asia after Indonesian rupiah and South Korean won,” The CEO of Alpha Beta Core, Khurram Shehzad said.
Furthermore, the analyst explains that the improvement in rupee-dollar parity will reduce pressure on external debt as well as imported inflation in the country.
The Capital Executive of BMA, Saad Hashmi said that the rupee may maintain the uptrend following Joe Biden’s victory in the US Presidential election. “Biden aims to improve US relationship with Iran; the development should push down crude oil prices in the international market as Iran is a major oil producer,” said Hashmi.
He further said that the development would directly or indirectly benefit Pakistan in the coming times as it was a net importer of crude oil and petroleum products. It meets over 70% of the energy requirement through imports and the share of energy in total imports stands at around 25% per annum.
However, experts are concerned that this Dollar-Rupee parity maybe affected by the Pfizer announcement of a successful Covid19 vaccine, and a decrease in international oil prices due to the second wave of Covid19. Moreover, Pakistan is to pay the debt of around $2Billion to Saudi Arabia by the end of January 2021.
However, Pakistan is more likely to cover this deficit by arranging $2million from China. Furthermore, the country is also all set to launch Eurobond and Sukuk (a Shariah-compliant bond-like instruments used in Islamic finance) worth Rs.$2billion by the end of February in 2021 so fingers crossed and hope this thriving journey towards improvement and development would not get halted.