Imported goods will be sold at rates based on the new parity with the dollar and will provide windfall profits to retailers. The fall in the rupee has been enough to absorb any except the most extraordinary fall in global oil prices, with the result that there will additional inflation as goods transport and power rates become more expensive. It may be noted that Senator Dar’s attempt to defend the rupee, which was the policy measure he was best associated with, has come to an abrupt end. Senator Dar came to the Finance Ministry last year to bring down the inflation ruining his party’s electoral hopes. His assumption that inflation was imported proved simplistic, and instead, Pakistan is faced with the sort of inflation it has never seen.

Source: Pakistan Today January 27, 2023 07:18 UTC