KARACHI: A brisk transaction in all foreign currencies, except the Indian, through the usual pound sterling, hailed the debut of the appreciated Pakistan rupee, when the banks in the country opened after four days’ closure… . India’s reluctance to accept the changed rates brought about by the devaluation of the Indian rupee itself, like her blitzkrieg of Ordinances on the commercial front has left Karachi circles cold. A high financial authority admired the … people of Pakistan and its economic structure for their “unlimited” capacity to absorb “severe shocks”… .

“The eventful decision — no devaluation — taken by the Government of Pakistan, was undoubtedly a “very severe shock” to the economic organism of the country and the healthy reaction only showed the high vitality of the organism,” he said. … The deadlock brought about by the Indian Ordinances banning all imports from Pakistan, except raw cotton, barley and rock salt and Bengal gram sent by land route, had no effect on the market whatsoever. Trade with India was completely at a standstill on Friday [Sept 23], and newspapers and cotton samples were the only goods sent from Karachi to Bombay by air.

Published in Dawn, September 24th, 2024