Daily Times

The rupee is slipping again. Extending losses from the previous day, Pakistan rupee fell by Rs 3.42 against the greenback; spelling an end to the brief period of respite. Considering a clearly worded condition of the IMF regarding the fluctuations between open and interbank markets, one can safely assume that former federal minister Ishaq Dar has once again proved to be a harbinger of yet another plunge to the bottom. Now that his iron-clad grip is nowhere to be found, currencies are moving freer than ever, with profound malice against Pakistan. The situation is expected to turn a few shades darker for the common man as the latest round manifests into the umpteenth hike in headline inflation. The newly installed caretaker government was forced to take the prices of petrol and diesel to a record high that is expected to unleash the proverbial genie. As the month of July had seen the inflation forces marginally cool off (28.3 per cent as compared to an unimaginable 38 per cent in May), the new impacts on the household budgets would be nothing less than a death sentence for a majority of middle to lower-middle income-holders. The ball had long flown out of the hands of the vulnerable classes who continue to be pushed further down the poverty line with every passing day. It is imperative for the interim setup to jump to action as soon as possible to help rescue those languishing between fire and the frying pan. Pakistan is facing a long string of existential crises and its people cannot afford to bleed at the altar any longer. If pennies need to be pinched and pursestrings are to be drawn tighter, the top one per cent should be targeted. As reiterated on so many other occasions, no country can hope to walk towards prosperity on the basis of taxation alone. Attracting foreign investment and working on the export base is crucial to reverse the dollarisation. Until then, regulations–however stringent–would do little to stop people from taking their money out of the country. It has never worked before and would not pull the rabbit even today. *