AS massive devaluation of rupee has made life of an average Pakistani miserable, Governor State Bank of Pakistan (SBP) Reza Baqir has defended the exchange rate policy claiming that some people suffer losses when the exchange rate goes up, but others also benefit from it adding that the policy helped overseas Pakistanis and their families s they were now sending back home more money to their loved ones than before.
The remarks offered by the SBP Governor to justify the depreciation of the rupee are unkind to a majority of Pakistanis, who are suffering hugely due to unending devaluation.
The policy has always been defended on the plea of its possible positive impact on exports (which is so far not visible) but it is, perhaps, for the first time that it is being justified on these lines.
The transparency requires that the policies should be formulated for the good of the majority and not for a few million individuals.
In fact, the Overseas Pakistanis are not the net gainers of the game as their families back home have to pay more for everything and every service, neutralizing the benefit of higher exchange rate.
The comments of the Governor are yet another indication that there is going to be no let up to the pathetic plight of the rupee, the parity of which against dollar hit yet another record low versus dollar on Thursday settling at 174.10.
There are apprehensions that the rupee-dollar parity may touch 200 in the near future reportedly in line with the dictates of the IMF.
People should brace for more inflation as the entire financial and economic team of the Government, instead of addressing the factors responsible, is focusing on defending the phenomenon, drawing an itchy parallel with other countries despite the fact that the latest report of the Economist ranked inflation in Pakistan as the fourth highest on the globe.
