RAWALPINDI: The Government today [May 11] decided to devalue the Pakistan Rupee, reducing its parity value from Rs.4.77 to Rs.11 to a US dollar. The dollar will now cost about 130 per cent more. The new rate will be effective immediately. All treasuries, banks, commodity markets and stock exchanges and customs houses will remain closed today and tomorrow. The decision announced a little before 9 p.m. had been taken at a special meeting of the Central Cabinet held in the evening. ...

Describing the decision as inevitable, the Finance Minister Dr Mubashir Hasan, in a nationwide broadcast … also announced enhancement of the bank rate from five to six per cent. He also said that it will also require adjustment in deposit and lending rates. The position will be watched in the light of the response of the economy to the exchange reform and other economic policies announced by the Government, he added. He also announced adjustments in credits as well as special measures to ensure that prices of commodities of common use did not rise as a result of the devaluation. … He hoped that the result of this decision will be tangible and far-reaching and will lead to a viable economy. — Newspaper’s special representative

Published in Dawn, May 12th, 2022