Daily Times

All defences are coming down crashing as the dollar creeps to new and new highs with every passing day. As if the home currency being traded at Rs 302 at the interbank was not enough of an excruciating blow, the greenback is changing hands above Rs 320 in the market. Unprecedented pressure on the rupee and an immensely active parallel system have left the government between a rock and a hard place because the IMF agreement does not allow for these glaring differences. If the trend towards the grey market continues, convincing the international lender for the next round of payments would become increasingly difficult for the caretaker government. While their intentions cannot be doubted, those standing at the wheel do not have much time to linger around or kick the can further down the dusty road. These staggering currency rates would further intensify the electricity and petroleum crises, which have already prompted the common man to proclaim enough is enough and head for the streets. A wave of protests continues to sweep across the length and breadth of the country amid calls for non-payment of bills, menacing demonstrations outside power distributor’s offices and a general disruption of lives. That a lot has transpired in the last year or so to grease the engine of devastation would be an understatement. Constant shrinking of the remittances and export pie, compounded by the lifting of import restrictions and the ongoing political uncertainty fuelling the dollarisation of assets are just some of the factors that made the inevitable happen. Considering the brutal attacks on business confidence, not much can be hoped in days to come. If the caretaker setup is actually interested in bringing about lasting changes, it would have to deliver on its crusade against currency speculators and those illegally dealing in foreign exchange. While this may result in a momentary respite, only an administration with an eye on the bigger picture can help revive the sinking ship. An economic growth of at least 3.5 per cent is required to set the record straight. Nothing smaller or nothing else can help Pakistan in the long run. *