Rupee’s resistance
Rupee’s upward trend against the US dollar is a jiff of fresh air. It simply notifies that the economy is gradually picking up, and efforts such as cracking down on black-money hoarders, smuggling and pushing on with critical exports is working. The fiat galvanised to a 12-month high, and stood a little below Rs280 to a greenback in interbank trading. This means the rupee has appreciated by 0.04%, which is a promising omen, and has a long way to go before it finds its compassionate territory somewhere around Rs260. Other features to read with it are current account surplus reaching a six-month high at $397 million as well as a noticeable boost in FDI in the last days of December.
Pakistani currency had been in an unstable zone over the last two years or so. It was seen that its value would erode to even Rs350 a dollar, making exports next to impossible. Coupled with this have been the enigmas of staggering power tariffs and soaring oil prices, pushing the purchasing power of commoners to a naught. It is a welcome shift that the currency has cumulatively gained 9.68% or Rs27.12 over the past four and a half months, and is striving to go higher. The avenues that need to be tapped at this critical juncture are how to swing back the textile industry into exports, and harness more deals for the infant enterprises dealing in IT goods and services for overseas markets. This will surely push the rupee to new heights, and open vistas of employment.
One of the biggest issues at hand to address is the sky-rocketing inflation, which hovers around 40%. This demands stringent micro-economic management and a ruthless strategy to curb hoarding of essential supplies, especially perishables and grains. The economy is passing through a decisive phase as political instability has left it in tatters. In such a depressing canvas, the surge in the rupee value and the receipt of $700 million from the IMF are welcome developments. Time to put the house in order and usher in politico-economic sustainability.
Published in The Express Tribune, January 20th, 2024.
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