Islamabad, July 26, 2021 (PPI-OT):The Pakistan Economy Watch (PEW) on Sunday said a weak rupee and costly oil is resulting in inflation which is beating poor. The price of food and oil products is increasing in the international market while imports and current account deficit are increasing which is resulting in economic troubles, it said. US dollar has jumped to Rs162.32 while the current account deficit is almost two billion dollars which show increased pressure on local currency, said Dr. Murtaza Mughal, President PEW.

He said that inflation has deepened poverty and the majority is unable to buy proper food for their families which is leading to health issues among millions. A good number of people are compromising on everything else as food is taking away a major chunk of their income, he added.

The aid provided to the poor has left much to be desired while the middle-class is disappearing under the pressure of inflation. The rupee would likely continue to trade under pressure next week on account of high demand and some other factors while the business community is awaiting the State Bank’s monetary policy, he observed.

According to independent economic experts, the rupee may shed more points against the dollar due to various problems which will be a nightmare for the poor who have no cushion against inflation. Some say that a sharp fall in the rupee’s value is not expected as SBP’s reserves are at $18 billion as of July 16, 2021. Almost all the business sectors are on a looting spree while the private schools are plundering parents under the pretext of online education, he said.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com