KARACHI: August 22,2023: US dollar appreciated by Rs 1.50 in interbank on Tuesday, putting the rupee in the worst position . The increase in value of US dollar pushed it to a new highs against the rupee.
According to the data released by All Pakistan Currency Dealers Association (APCDA) , with the increase in value by Rs 1.50 , US dollar jumped up to Rs 299 in interbank on closing of the local currency market on Tuesday. In the open market , US dollar set a new record and its value jumped to Rs 306. Free fall of the rupee is a serious blow to the national economy as it bites every sector including industrial, trade and business .
The rupee is losing its value fast for the last two weeks and it has opened up a floodgate of the price hike in the country . The prices of each item including food stuff have gone up alarmingly in the last two weeks or so , making it even harder for the people to make their living . Similarly , the cost of inputs used for construction sector have increased even more than proportionate impact of devaluation of the rupee. Its an irony of the people of Pakistan that they face the worst exploitation whenever the rupee devalues in the local currency market.
The industrial sector, in particular , exploits the situation and increases its products’ prices more than proportionate impact of the rupee devaluation . Take example of cement and steel sectors . In recent days may be in a week their producers revised upward the prices of cement and steel on almost daily basis to earn windfall profits by using devaluation of the rupee as a trick.
The worsening of the financial crisis in Pakistan has provided a golden opportunity to the industrial sector to exploit the situation and keep revising the prices of their products disproportionately to fleece the end consumers .
The profit-making drive of the industrial sectors in the last one and half years has added to the financial woes of the people. But unfortunately the system to have a check on exploitation of the industrial sector and traders is non-extent in Pakistan .
Since , the ruling elite is a part of the exploiting filthy rich industrialists and traders they has no fear of any action for making undue profit on their products.
The continuous devaluation of the rupee indicates helplessness of the caretakers . Prior to coming in of the caretakers , Shahbaz led coalition government hardly took any serious step to protect the people from exploitation of the industrial sector and trading community.