Dollar rate in Pakistan January 2023. Devaluation of the Pakistani Rupee with reference to the US Dollar during the month of January 2023
Since the second quarter of the year 2022, a sudden negative trend in the overall economy of Pakistan is being observed especially in the devaluation of the Rupee, with abnormal increase in FE conversion rates especially the US Dollar rate in Pakistan with reference to PKR. Abnormal hikes in petroleum prices resulted in hyperinflation in the country and the falling of Dollar reserves with the central bank to a nine-year low level of US $ 3.6 billion.
The situation suddenly got worst when in the last week of January 2023, US Dollar surged to PKR 263 from PKR 231 in one day showing a record increase of PKR 32 about 14% in the price hike Dollar in one day. Besides this, the acute shortage of Dollar reserves has put essential imports at almost a halt that has very badly affected the industry. Due to the unavailability of raw materials and increase in the cost of production, major industries including the automobile industry are at risk of discontinuing operations for which examples have been witnessed in the near past by closure by the companies for short intervals. The increase in the cost of production has also badly affected the country’s exports, causing a disturbance in the balance of payments.
Despite repeated efforts, so far no hope for financial support or loan installment has been ensured by the IMF or other friendly countries such as Saudi Arabia and UAE. However, the ninth review by the IMF is expected in the first week of January which will decide the fate of financial inflow giving oxygen to the economy for further few weeks.
The overall conclusion is that the country is on the verge of financial collapse having a fear of bankruptcy. The most affected are the low-paid masses that are living below the poverty line. The major reason for this stage is the political instability, wrong financial decisions, and corruption. It is the need of the hour to take serious steps for the improvement of the economy for the survival of the state.