A STABLE currency is important to achieve real economic growth for any country in the world. Pakistani rupee has gone down in the last few years, which has had a negative effect on the national economy. When the currency is depreciating and has a weaker outlook, foreign investment stops coming in. A country like Pakistan cannot achieve real economic growth without foreign investment.

The devaluation of currency tends to cause inflation, especially in countries that have huge import bills to manage. Since we habitually consume a lot of imported stuff, the prices of goods and services increase immediately after devaluation, making the life of the common man miserable.

Theoretically, devaluation of rupee should result in increased demand for exports because our exports become cheaper abroad for the foreign buyers. But this has not been the case, for we have not seen any noticeable increase in our exports after the devaluation because we do not have any significant exportable surplus. This means that whatever good we could expect post-devaluation is not achieved.

The relevant authorities should take necessary steps to stabilise the rupee and do whatever it takes to make it happen.

Ejaz Ahmad Magoon
London

Published in Dawn, December 31st, 2021