Daily Times

After an extremely brief respite from a bloodbath in the currency market, the dollar woes have returned and are ready to leave behind a solid mark. With the Pakistani rupee falling to Rs 297.13 against the greenback while the dollar changed hands at as high as Rs 307 in the open market, there’s no telling where the plateau would hit. Considering rife reports about unavailability in the market as well as a sticky obsession with hoarding for higher returns, it would be safe to assume that the Dar days have long vanished and we are back to the crippling freefall. There are significant concerns about the prices of oil gaining momentum in the international market and the persistent Damoclean sword of foreign debt hanging over our fragile resources. Speculative forces churn along in overdrive because, at present, the mafias seem to be holding all the cards. Between dollar smuggling across borders, overseas flight of capital out of fears of uncertainty and the grey market moving forward in leaps and bounds, the state and its writ are nowhere to be seen. One cannot help but wonder whatsoever became of the great clamour that used to follow the ex-finance czar whenever he managed to (rather, give an impression of) pull(ing) the rabbit out of his hat. Are they still cheering him on the single best thing that could happen to the Pakistani economy? Is his tight grip on the dollar touted as an incredible lesson for future economists? Those entreating the exhausted masses to “let bygones be bygones” would do well to remember how catastrophic pressure on the rupee would be for the vestigial industries trying to break even. From import bills aiming for new heights to unbelievably high costs of production to the inability to sustain the demanded supply, the manufacturers are suffering the death of a thousand cuts. If talking about the macro-picture, Pakistan’s total debt already stands at an overwhelming 86.2 per cent of its GDP. The continuing depreciation of the rupee would make it tremendously difficult to keep up with the wrath of inflation and demands from our creditors. *