KARACHI: Despite facing macroeconomic challenges and sluggish fiscal progress, Pakistan’s economy is showing signs of improvement as the Pakistani rupee exhibits remarkable resilience against the US dollar. A government crackdown on dollar smuggling and hoarding has resulted in a substantial appreciation of the rupee, offering a positive outlook for the national economy.
Commencing on September 6, the caretaker government introduced a “zero-tolerance” approach to curb smuggling and hoarding, leading to an appreciable gain of approximately Rs 24.41 against the dollar in interbank trading during 22 consecutive recovery sessions, as of October 6. To encourage citizens to report illegal activities, a toll-free hotline has been established. Stringent measures are being implemented against unauthorized money changers and other illicit entities, accompanied by significant policy reforms.
Economic experts anticipate that as the Pakistani currency restores its genuine value, strength, and stability, various economic indicators will exhibit positive trends. The rupee’s appreciation has garnered international recognition, positioning it as a top performer on the global stage. The narrowing gap between interbank and open market rates is expected to drive overseas Pakistanis to opt for legal channels, contributing to increased remittance inflows and further enhancing the economy’s prospects.
