ISLAMABAD – Pakistani economist and expert Ashfaq Tola claimed that the real value of US dollar is Rs243.32, but it is being artificially inflated due to internal and external pressures, particularly from the IMF agreement and vested export sector interests.
Speaking in TV interview on a private news channel, the former President of the Institute of Chartered Accountants of Pakistan (ICAP) said USD should not be valued at over Rs235, and that its current market rate does not reflect true economic fundamentals.
US dollar has been kept high as IMF wanted the exchange rate to remain elevated, and some domestic elements involved in exports have also benefited from the inflated dollar value, Tola claimed.
He further alleged that these exporters profited massively when the rupee depreciated and now want to retain high margins by opposing any drop in the greenback’s value.
He stresssed that even Prime Minister, Deputy Prime Minister, and Army Chief acknowledged that rupee is undervalued, and called on authorities to be transparent with nation if any restrictions or conditions are forcing the government to keep the rate high.
“If there’s any constraint, it should be presented before nation. We deserve to know the truth,” he urged. His comments reignited debate around transparency of Pakistan’s foreign exchange policy, and whether currency manipulation is being used as a tool to appease lenders and profit certain sectors at the cost of the wider economy.
