Inflation rate is decreasing in Pakistan and it has been confirmed by international financial institutions. Experts say that as a result, the Pakistani rupee will stabilize and the value of the dollar is expected to reach 220 rupees by 2025.
The rupee is expected to appreciate by Rs 55 or 20% over the next few months.
For the first time in three years, the real interest rate in Pakistan has become positive.
When the real interest rate becomes negative, the rate of return that the bank gives you on your money is higher than the rate of inflation. As a result, there is no benefit for you to keep money in the bank. Conversely, when the real interest rate is positive, the rate of return is greater than the rate of inflation.
In Pakistan, the real interest rate was running negative for the last three years.
According to the leading website Pro-Pakistan, a former senior central bank official said that the Pakistani rupee will rise to 220 or 230 in early 2025 due to the real interest rate situation.
That means the dollar will be worth 220 rupees.
The official said that the rate of inflation is continuing to decrease and it seems that the central bank will cut the interest rate very soon, which will result in the real interest rate becoming more positive. As a result, the amount of interest on Pakistan’s debts will also decrease and the value of the rupee will improve.
It should be noted that the next meeting of Pakistan’s Monetary Policy Committee is scheduled to be held on April 29.
However, according to the former official, if Pakistan fails to roll over the debts, the situation may be reversed.
The rupee has been stable in recent months, but it depreciated slightly in the last two weeks of March. The reason for this is the increase in dollar demand. Pakistan’s import bill has increased by 26% in March. Due to this, it is feared that dollar hoarders will not immediately bring dollars into the market.
The final determination of the value of the dollar will depend on the success of Pakistan’s negotiations with the IMF and the rollover of debts.
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2024-04-16 10:33:29