Finance, Forex and Investments

Why pakistani currency is not getting stronger against dollar?

I am very surprised to realize that pakistani rupee exchange rate is almost 60 to 1 US dollar whereas US dollar is declining these days. All other currencies in the world are getting stronger against dollar. For example indian rupee is about 38 whereas pakistani rupee is 60 . Why pakistani rupee is not getting stronger against dollar. It should be atleast 50 to my knowledge. Please explain i will really appreciate. Thanks !!!!

Public Comments

1. The exchange rate of the rupee depends on a number of factors including the exchange rate of the dollar around the world. It depends on inflation and export prices and the demand for Pakistani goods abroad and the ready availability of those supplies. These factors have not been very favourable to Pakistan. So there has been a creeping devaluation . The high cost of imports as a result of the high exchange is one of the major causes of inflation in Pakistan and that is called the imported inflation. The Indians enjoy the benefit of a stronger rupee by getting their imports at Rs39 a dollar while we pay nearly Rs61 a dollar. This factor is usually ignored when we talk of prices in India and Pakistan. The cost of production , transportation and exports have tovs be kept low to maintain reasonable export prices and keep the prices competitive. If high inflation prevails, the export prices will rise and the exchange rate of the rupee may slip further.