KARACHI: August 24, 2023: Devaluation of the rupee is continuing unabated as US dollar crossed a psychological barrier of Rs 300 mark in interbank.
At the end of the trading session in the currency market on Thursday, US dollar closed at Rs 300.30. In the open market, US dollar touched Rs 314 level. It’s for the first time that US dollar crossed psychological barrier of Rs 300. It indicates the level of Pakistan’s economic crisis and possible future trend. Pakistan’s economy is being run on borrowing from the local banks. In other words, the banks are dictating the state to run the national economy.
The banks are operating like a monster in Pakistan. They directly control the State Bank of Pakistan (SBP) which instead working as a regulator of the financial sector is promoting and protecting the interest of the banking sector. SBP is continuously revising upward the interest rate to provide an opportunity to the banking sector which is an organized mafia to make windfall profit on lending. The government is only borrowing agency of Pakistani bank. Any upward revision in interest rates add proportionately to the profit rather extortion of the bank.
SBP’s strategy to keep on increasing interest rate and push it to 22 percent is practically a criminal activity. As high as 22 percent interest has made it impossible for the businesses and industries to borrow from the banks and do any business or industrial activity in Pakistan.
The forex dealers also hold the banks responsible of fast track devaluation of the rupee. All Pakistan Currency Dealers Association (APCDA) Malik Bostan Khan, talk to NEWSMAN on the issue of devaluation of the rupee. He argued that interbank dollar rate dictates the open market and as long as interbank dollar rate is maintaining upward trend it will continue to harm the local currency. Malik Bostan Khan suggested that SBP should take action to stop the banks from exploiting the market and push up US dollar rate artificially.