Governor of the State Bank of Pakistan, Reza Baqir, has justified the Rupee currency depreciation, claiming that it benefitted Pakistanis living abroad and that inflation in Pakistan is artificial.
His remarks come as the PTI administration establishes price control committees and considers a targeted subsidy on petroleum commodities.
Reza Baqir spoke with the media in Manchester, England. He claims that inflation in Pakistan is artificial and that it would be brought under control shortly.
Rising currency rates, according to Baqir, have pushed up costs in Pakistan.
However, in the same talks, the SBP governor justified the currency depreciation, claiming that it benefitted Pakistanis living abroad.
“How does it help them?” Remittances are rising as a result of our brothers and sisters from various nations who send their hard-earned money back home.”
According to Baqir, while a fluctuating currency rate harmed “some” people, it benefited others.
“For example, if our remittances reach $30 billion or more this year, and the rupee falls 10% in the last few months, the families of overseas Pakistanis will get an additional three billion dollars.” “This equates to more over Rs500 billion,” he stated.
“What I intend to say is that any economic strategy benefits some people while hurting others. When discussing those who do not benefit, don’t forget about those who do.”
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A UK-based Pakistani, Omer Azhar, shared a clip from Reza Baqir’s press conference, saying that for the first two days of his UK visit, Reza Baqir refused to comment on rupee depreciation and rising inflation, and then he spoke about the benefits of the rupee depreciation, but it is clear that majority suffers from rupee nosedive, effects of which are amplified due to commodities’ supply chain mismanagement by the government.
Azhar said that the governor of the SBP appealed to the PTI’s foreign voter group and attempted to portray an intrinsically unfavourable policy as beneficial.
Currently, the Pakistani Rupee is being traded at 173.18 against US Dollar. And as per the forecast of financial experts, it may go up in the coming months.