Home South Asia Pakistan Rupee Devaluation: Was the State Bank’s Independent policy the cause?

Rupee Devaluation: Was the State Bank’s Independent policy the cause?

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Rupee Devaluation: Was the State Bank’s autonomous policy the cause?
PM Khan in an interview with TV Talkshow personalities has stated that the devaluation of rupees is solely based on the actions of the State Bank. The decision of intruding new exchange rates under the influence of prevailing temporary inflation rates was a major factor in the fluctuation in the Dollar to Rupee rate in recent days.

“Please remember, we are trying to autonomise institutions,” he said. “We have made SBP autonomous; they took the decision because they deem it fit.” Prime Minister Imran Khan commented that 19 billion trade deficit was the output of flawed policies of the previous government which we are facing now. “The PML-N government had spent $7 billion to [artificially] maintain the value of the rupee,” he said.

Dingbing claimed that China would never leave Pakistan in a lurch and would provide maximum resources to Pakistan in order to strengthen the wobbling economy.

To counter the economic menace, Imran Khan assured the anchors that they have directed the State Bank to conclude their policies while taking government and civil societies under consideration. Similarly, the rupee devaluation has direct relations with policies implementation in Markets versus investments “The [rupee] adjustment is a temporary phenomenon,” he assured. “We are facing a foreign exchange crisis. Our [macroeconomic] indicators are now headed in the right direction; we will not face the issue in the future.”

The Prime Minister showed optimism about the upcoming investment and Small & Medium Enterprises which are the core elements of wealth generation. Since there is a direct relationship between money creation and the medium/environment provided to them to operate within. Government is considering/targeting that legislation and legal cum political culture which can favor these businesses community.

Read more: 3.2% decline in the value of Rupees to dollar

“We are trying to create a [positive] environment. We are establishing an office entitled ‘ease of doing business’ to provide a one-window solution to investors and to resolve their issues,” he said. “Though it is a slow process, we are trying our best to ensure ease of doing business.”

Giving credence to PM Khan’s statements on investment, Chinese Consul General Long Dingbing said on Sunday that Beijing would invest in multiple sectors and projects in Pakistan instead of providing loans to boost Pakistan’s economy.

Earlier during his visit to China, Prime Minister Khan and Premier of China Li Keqiang agreed to task the CPEC Joint Cooperation Committee (JCC) explore ‘new areas of cooperation’ under the CPEC.

Dingbing claimed that China would never leave Pakistan in a lurch and would provide maximum resources to Pakistan in order to strengthen the wobbling economy. He said that China would provide multiple forms of bailout packages to Pakistan by investing in fresh projects to broaden the area of China-Pakistan Economic Corridor (CPEC).

He said that the donations were being collected in China for the families of martyrs, while Dingbing had given 2,000 RMB and Zhengwu 1,000 RMB for the cause.

About the Prime Minister Imran Khan’s recent trip to China, Dingbing said that two countries inked 15 new agreements that would help to increase the cooperation in politics, financial sector, people to people contacts and cultural ties between neighboring countries.

Read more: 3.2% decline in the value of Rupees to dollar

Earlier during his visit to China, Prime Minister Khan and Premier of China Li Keqiang agreed to task the CPEC Joint Cooperation Committee (JCC) explore ‘new areas of cooperation’ under the CPEC. It was decided that eighth session JCC would be held in Beijing before the end of this year.


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