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- The Dollar Dilemma - July 4, 2019
What is U.S Dollar, why it is so important for people? It is just the coins and pieces of money, varies from 1, 5, 10, 25 and 50 cents, to $1, 2, 5, 10, 20, 50 and highest $100 note. Every country has money in the paper but still no importance as compared to the United States Dollar.
Basically, U.S dollar is the Key Reserve Currency, which means that the central bank holds it in monotonous number, dollar account shares 60% of the total global currency reserves. Even, 85% of trading volume in the foreign market. According to the universal agreement and policy, the trade is compulsory in U.S dollars.
Living in Pakistan, we all are worried about the escalation of Dollar, nowadays this is one of the hot issue among general public.
Since 18th August 2018, the time when the ruling PTI took charge of the federal cabinet, everything was going in the flow but within the shortest span of two to three months one of the devastating thing was the declining level of country’s economy which frequently includes the increase in the rates of utility bills, dairy products, taxes, petroleum products, oil and most importantly the rising value of US dollar.
It must be noted here that ten months ago the dollar was on 123.35 Pakistani rupees.
It is in the history of Pakistan that the dollar had reached to the unexpected peak after hitting at 164 Pakistani rupees and it is predicted that it will increase more in the upcoming days. It is expected that the dollar will be locked at 175 to 180 rupees or maybe more in the upcoming future.
At the time of tenure of former President General Pervez Musharraf the rate of dollar was constant, which was 60 Pakistani rupees but soon after him, during the reign of other government including PPP, PML-N and the incumbent PTI rule the dollar hiked more than double.
When PMLN’s government was turned over the US dollar was 123.35 in the open market. After the took over off PTI’s government there was constant fluctuation in the US dollars till October 2018 which was between 122.84 to 124.29, it is the common practice due to the stock exchange market.
The first shock which the citizen got was the rapid increase in a dollar on 11th October ’18 was 122.84 to 131.69 PKR. By 15th November it reached 134.66 PKR then there was no way out to come towards deceleration. On 3rd December it was recorded at 137.87 whereas on 5th December it was on 138.71 PKR. On the occasion of New Year ’s Eve, the dollar closed at 140.26 PKR.
When we entered in the new year the hope was to overcome all the exceeding prices because of the new budget, as we were constantly being enlightened that all the hardships are for the time being but new year proved to be more complicated than before.
Till April 2019, the fluctuation was observed in dollar rates. From the 1st of April, it hikes at 141.70 to 143.99 on 17th May. Yet worst was about to come, on 20th May it directly jumped to 146.86 PKR, within two days it reached to 150.57 PKR. On 15th June a dollar closed at 154.94 and within two days it was on 155.25 PKR. From the starting month of July, the dollar is recorded 162.86 PKR.
Unfortunately, when dollar accelerates, rupees are devalued, gold, silver price strikes, not only materialistic things but it also affects perishable, long term items, and dairy products. Even technology becomes expensive.
The worst condition of the manipulator people can be considered by their devilish brains which are always ready to take advantage of the worsening conditions of the citizens. Sellers are taking the most advantage by the acceleration of the dollar even on their older stock by falsely tagging it as a newly purchased stock with the increased rate.
Mediocre can still bare the expense off rising costliness but for the poor and who are living below the poverty line it is totally bearable, as a result, they are forced to beg to feed the family, consume contaminated food or least option is to kill them as an honored killing.
Now it’s high time for the citizens of Pakistan to think as a united nation, not as an individual who is always seeking for their own advantage. Firstly we should stop availing imported items for the timing being, this will directly affect our countries economy.
As we have to pay in US dollars and due to the increased rate we have to pay extra money for the same product. The government should emphasis over the exports of the country in the deserving price, we should provide profit to our county.
Well, on a lighter note it could be said that people have great expectations from Prime Minister Imran Khan and still many thinks that the ruling PTI’s government will make all its best to tackle with the economic challenges in a systematic manner.