According to reports, the value of the Pakistani rupee has fallen from RS 123 against USD in August 2018 to RS 177 against USD in December 2021. This makes it one of the highest devaluations of the currency in the history of the country.
Islamabad (Pakistan): Pakistani rupee has depreciated 30.5 percent against the US dollar in the last three years and four months under the current Government of Pakistan Prime Minister, Imran Khan. According to News International, the value of the Pakistani rupee has fallen from RS 123 against USD in August 2018 to RS 177 against USD in December 2021, a decrease of 30.5 percent in the last 40 months. This makes it one of the highest devaluations of the currency in the history of the country.
In particular, the only one other devaluation occurred after the fall of Dhaka, and the Currency of Pakistan was devalued by 58 percent of RS 4.60 to RS 11.10 against USD in 1971-72. The former economic advisor Dr. Ashfaque Hassan Khan said there was a complete decomposition of the formulation of economic policies, since the country’s fiscal policy had been subordinated by monetary policies and exchange rate policies. In addition, he said that the monetary depreciation of tightening and exchange rate resulted in greater inflation, public debt and debt service, reported international news.
The empirical evidence showed that the monetary ignition of one percent walked the inflationary pressure by 1.3 percent in the case of Pakistan. Experts say that the mass devaluation of the currency under the Government of Imran Khan fueled inflationary pressures. They believe that depreciation of the exchange rate by 30.5% led to greater inflation, according to the report.
