This was the time when the PML-N government should have devalued the rupee to keep the country’ exports competitive. Making a purely economic issue a matter of prestige, Ishaq Dar pooh-poohed those who advised him to take the action. Dar was thus responsible for a yearly decline in Pakistan’s exports to the extent of 20pc in dollar terms. By taking note of the writing on the wall and initiating devaluation step by step, Dar could have ensured that there was no sudden rise in inflation. While the exports declined as a result of Dar’s stubbornness, an overvalued rupee led to the rise in cheaper imports.

Source: Pakistan Today December 14, 2017 03:00 UTC