First of all, it is all about dollars. The dollar in interbank is for rupees 226 and open market is 265 rupees. The banks are buying dollars from the open market to serve their credit card customers. The dollar is still around 23 index points off from its actual disposition. In my opinion, a series of events led to the failure of Ishaq Dar to maintain the value of the Pakistani rupee at a stable level and address economic issues as he had done in the past.
There were a series of events that contributed to the economic challenges faced by Pakistan and the inability of the Finance Minister, Ishaq Dar, to address them effectively. The SBP Amendment Act gave the central bank control over currency policy and the IMF has pressured Pakistan to maintain a market-based exchange rate. Dar’s attempts to intervene in currency markets and maintain the value of the rupee were unsuccessful due to the independence of the central bank and negative market perceptions of his actions.
