Sneak peek into the history, trend and forecast of Dollar Rate in Pakistan.
We cannot deny the fact that the increasing dollar rate in Pakistan has surprised everyone, as it is one of the peak rates ever occurred since past 20 years. But before you begin your discussions about the increasing dollar rate in your boardrooms and gym, it’s essential to visit the past history.
Was the dollar rate in Pakistan always this high? Well, of course not – instead multiple factors led to it. The dollar rate has been continuously on the verge of increasing for past two decades, well since 2000. The lowest price of dollar in 2000 was 53, and then other affecting constraints such as political instability, inflation, terrorism etc. has led the dollar rate to fly high in sky. Gradually year after year, dollar rate was increased – until 2012, when it finally reached to a record high price of around 100 PKR.
Changing political constraints and wide trade deficits along with the funds borrowed from World Bank led to these extreme dollar rate scenarios. Last year in May 2019, the dollar reached an all-time high-rate of 154.5.
Considering the overall condition, the end results seem pretty bad! However, you can always look at the brighter side. Let’s discuss some of the factors and measures that can be taken to bring down the dollar rate in Pakistan.
Encourage Local Businesses in Pakistan
Either it’s the state importing machineries and oils, or people at home simply ordering through the ecommerce websites, the ratio of imported goods is crazy in Pakistan. Regardless of how high the chart of US dollar goes, the graph of imported goods never comes down.
It’s important to promote the use of local goods and encourage local businesses in Pakistan – if we start using imported goods even for everyday uses, the survival will become exceptionally difficult. It is best to purchase local goods as it is beneficial for the country in the long run.
Increase in International Remittance
Increase in the international remittance can play a huge part in stabilizing the value of Pakistani rupee against dollar. Here is where the role of overseas Pakistanis comes into action – they are surely not part of the economy but remain aware about the shaky US dollar rate in Pakistan, all thanks to social media.
Overseas Pakistanis can conveniently help the economy by sending foreign remittance to their friends or family into country and enhance USD to PKR forecast. Financial remittance acts like a catalyst for financial markets for developing countries like Pakistan.
USD to PKR Forecast for 2020
According to the International Monetary Fund (IMF) suggests that the average rate at the end of this year could be around Rs172.53 to a dollar. Although, this rate is not accurate however some reports on the basis of current account deficit projections gives a silver lining that the rupee will keep losing its value. The Rs172.53 to a dollar average exchange rate would stoke the inflation that the IMF has estimated at 13%. The means that the annual inflation rate in this fiscal year is expected to soar to 18%.