US Dollar to hit back against Pakistan Rupee in coming months: report
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Nik International Exchange's Chief Executive Officer, Salim Amjad, says that it's not the first time we've seen a continuous decrease in the value of the dollar. In fact, over the past two years, we've witnessed fluctuations in the dollar's value. In August 2022, during Muftah Ismail's tenure, the dollar dropped from less than 240 in the interbank market to 213, which is a difference of nearly 27 rupees.
Then it rose to 240 again. When Ishaq Dar returned, the dollar continued to decrease slightly on a daily basis. In October 2022, it settled at 219 in the interbank market, which was a decrease of about 21 rupees, but over the next few months, it rose to 250 and then 288.
During the caretaker government, the dollar reached almost 307 in the interbank market, and in September, it has only dropped by 19 rupees so far, which is relatively low compared to past fluctuations.
He further stated, "Every year, around seven million Pakistanis are going abroad. Those who go abroad sell their properties and convert it into dollars, sending it back. Every month, one million Pakistanis are going for Umrah, taking dollars with them. The use of credit cards has increased significantly."
He also mentioned, "Earlier, there were annual outflow of about 500 million dollars, now it has increased to nearly one billion dollars. Loans and interest payments need to be made in dollars. To fulfill all these needs, one way is to increase exports, the second is to increase foreign investments, and the third is external borrowing. If Pakistan performs well in any one of these sectors, it can help control the dollar. Otherwise, pressure on the rupee may increase after December."
According to Salim Amjad, "Pakistan's dollar inflow is almost 60 billion dollars, and the outflow is approximately 85 billion dollars. Closing the gap of 25 billion dollars is a challenge."
