PKR VERSUS DOLLAR

AHSAN ALI SHAH
Sep 1 - 7, 2008

"Pak rupee records slide versus US-Dollar" or "Pak rupee plummets to a record low against US-Dollar," these and many more statements recently have been common to beginning of each day in Pakistan. Be it the radio, the television, the publications, the internet or any other media involved; each and every one of us have to get up to find Pak-Rupee depreciating at a rate closer to knots. Further more to this is yet another hard truth attached; and that is, all of us no matter how much we are affected by this kinetical race between the two currencies- in which Pak-Rupee is without any skeptism at the receiving end- not much can be done, and at best we can be mere spectators at variance.

Falling of rupee does not hurt as much as the inevitable fact that we don't even have a concrete plan to implement the sort of correctives measures required. The recent Government indulged so more profoundly to get hold of rule, that it only further narrates a dismal scenario of our country staged by its demagogues.

If we take some authentic figures into account then we will find the exact situation Pak-Rupee has faced in recent times against US-Dollar, which by all means is worth noticing.

PAKISTAN RUPEES (PKR)-US DOLLAR (USD)

START OF THE YEAR 08 (FEB-JUNE)

2/29/2008

Friday

62.45000

PKR

USD PKR rate for 2/29/2008

3/5/2008

Wednesday

62.87000

PKR

USD PKR rate for 3/5/2008

3/6/2008

Thursday

62.50000

PKR

USD PKR rate for 3/6/2008

4/23/2008

Wednesday

64.31000

PKR

USD PKR rate for 4/23/2008

4/24/2008

Thursday

64.59000

PKR

USD PKR rate for 4/24/2008

5/29/2008

Thursday

67.50000

PKR

USD PKR rate for 5/29/2008

5/30/2008

Friday

66.94000

PKR

USD PKR rate for 5/30/2008

6/2/2008

Monday

67.02000

PKR

USD PKR rate for 6/2/2008

6/3/2008

Tuesday

67.31000

PKR

USD PKR rate for 6/3/2008

VERSUS JULY-AUGUST, 08

7/1/2008

Tuesday

68.45000

PKR

USD PKR rate for 7/1/2008

7/2/2008

Wednesday

68.40000

PKR

USD PKR rate for 7/2/2008

7/15/2008

Tuesday

70.33000

PKR

USD PKR rate for 7/15/2008

7/16/2008

Wednesday

71.35000

PKR

USD PKR rate for 7/16/2008

8/7/2008

Thursday

72.50000

PKR

USD PKR rate for 8/7/2008

8/14/2008

Thursday

75.03000

PKR

USD PKR rate for 8/14/2008

8/15/2008

Friday

76.42000

PKR

USD PKR rate for 8/15/2008

8/25/2008

Monday

76.70000

PKR

USD PKR rate for 8/25/2008

8/26/2008

Tuesday

76.65000

PKR

USD PKR rate for 8/26/2008

The two comparative tables above shows historical exchange rates between the Pakistan Rupee (PKR) and the US Dollar (USD) for the random dates pulled between 2/29/2008 and 8/26/2008. Now then, what this shows is the deterioration of Pak-Rupee that has stepped in and so vigorously for the month of July and August months which have also seen a record low - PKR 76.7 to USD 1.

Further to the above tables, the following graph is the 5-year view of Pakistani rupee versus the US dollar. One can easily note the alarmingly sharp decline in the value of Rupee in the last few months.

The Following graph shows Rupee's sharp decline as of August 7, 2008

The situation is without a doubt bleak and even gloomier then ever as there are no means where the future can be ascertained secure. On top of this all there are talks to curb the imports and apply for more international loans at a lesser interest rate to address the weakening of Pak-rupee scenario. Such policies rebuke the state of mind of the people running the country. This is as negative as a leg spinner bowling leg side to reduce the flow of runs in a cricket match; the only difference being that the end result in the latter will be a mere loss of the game, need not mention the drastic consequences for the former. The imports have already seen a gigantic rise of duties with a fear striking the hearts of investors at large whether the country will be able to pay back. And if loans are considered then again we are already drenched to our necks that even thinking in this direction can drown us as a nation.