The woes of Pakistan’s rupees appear to have acquired a kind of permanency to the chagrin of the country that has been witnessing increased pressures on its external account these days. It is said that the Real Effective Exchange Rate (REER) is well below 100, which means that the PKR remains undervalued and has room for appreciation. Little does the incumbent government, however, know that the rupee slide constitutes a big question mark on its approach to country’s economy. For example, it has not been able to even contain or curtail the current expenditure, which has attained an astronomical high. Its failure gives a reason to believe that the current bad economic situation will not end soon.

Rehan Siddiqui (Karachi)

Copyright Business Recorder, 2021