After May's massive devaluationwhen its value reached the new low of 70rps per $,now it is further downsliding as touching 74 rps per $......


as the CENTRAL BANK z monitoring the continuous fluctuation of pakistani rupee,it has come up with certain regulations as...


1: it has suspended forward booking of dollar.


2:it has reduced trading time.


3:it has reduced advanced payment from 50% to 25% against import.though earlier the importers were allowed to buy US $ in advance to the xtent 50% of the value of Theirs imports.

4:Central Bank announced to make 100% payments for oil imports by itself..

bt still there z a fear that rupee may devalue further ion the upcoming days bc of increasing demands of dollars by importers..


such a DEVALUATION has affected mopst of the economic targets even those of foreign debt repayment and servicing and imports as well..


according to STATE BANK OF PAKISTAN the data of countrys foreign debts and liabilities which was 45.9 billion dollars in MARCH2008 will also increase further due to depreciation of rupee...though it was 40.5 billion dollars on 30 june 2007..
however economists believe that bc of this v fact our country would hv 2 resort to borrowing from INTERNATIONAL FINANCIAL INSTITUTIONS as IMF....

it z observd that increasing prices of pulses,edioble oil and wheat hv disturbd the budget of a common man and sch a recent devaluation will put further burden on his pocket...it will add to inflation,which z already here in double digits.........


According to Chairman of the karachi wholesale Grocers Association, ther will b further increase in the prices of food items,which r already v high,jst bc of rupee's devaluation.


Economists and Bankers believe tat such depriciation z the result of increase in gap btw imports and xports.


According to Federal Bureau Of Statistics,our country's imports increased to all time high of $39.968 billion in the financial year of 2007-08 against $30.539 billion in the previous financial year,thus registering a growth of 30.87%.


Economists r concernd abt declining investment in the country as currently no FOREIGN DIRECT INVESTMENT z coming into country.Actually invesyment z going out of country...


despite the fact that Pakistan z an agricultural sector,it has 2 import food items..as the import of WHEAT cost Pakistan 800 million$ last financial yr,while on import of COTTON our country spent rps 40 billion,bc local varities were attackd by pests...

it z now SUGGESTED...

1:import of luxury items should b banned.

2:govt should give incentives to the agricultural sector so that it could produce more wheat and cotton to reduce the import bill.


3:the consumption of petroleum products can b reduced by converging buses and other vehicles on CNG(compressed natural gas).

4: discouraging rampanT car financing..

now in sch scenario our govt needs to announce a proper Privatisation programme and to adopt sch measures to attract FDI...

however it also needs 2 reduce domestic and foreign borrowing jst for the only and major purpose of stabilising and rebuilding PAKISTAN'S FALLING ECONOMY......

NOW HOPING 4 THE BEST.....