Why Pakistani rupee depreciated against the Afghani?

Pukhtun Nama Desk News

Khwaja Asif and Ahsan Iqbal, leaders of the opposition Pakistan Muslim League-Nawaz (PML-N), have sharply criticized the Pakistan Tehreek-e-Insaf (PTI) policy and expressed surprise that the currencies of Afghanistan and some neighboring countries are still denominated in Pakistani currency (Rupee).

Ahsan Iqbal, a senior member of the PML-N, blamed Imran Khan’s PTI government, saying: “Nepal’s economy is ahead of us, even now Afghanistan’s currency is ahead of us (more than the rupee). ). ”

He added that due to the wrong policies of the Pakistan Tehreek-e-Insaf (PTI) government, Pakistan’s economy is on the verge of collapse.

At the moment, one Pakistani rupee is worth less than half an afghani, and in Kabul, 1000 Pakistani rupees are exchanged for about 460 afghanis. But the rise in the value of the afghani against the Pakistani rupee is nothing new, and the Afghan currency has outperformed the Pakistani currency over the past decade.

Although the afghani and the rupee have never been equal during this period and the afghani has remained high, it is worth noting that the Pakistani rupee has depreciated even more against the afghani in the last three years.

If the currencies of Afghanistan and Pakistan are compared, it is worth noting that both currencies have lost value against the US dollar. In 2012 One US dollar used to be worth 43 afghanis, but now it has reached 77 afghanis.

In the same year, the price of one dollar in Pakistan was around Rs 85, but now it has gone up to Rs 168. However, during this period, the Pakistani currency has lost half its value against the dollar, but the Afghan currency has not lost half its value.

How Afghanistan has managed to keep its currency afloat during this period, economists say, may be due in part to the fact that Afghanistan does not have large international debt, such as Pakistan, and that it receives more foreign aid.

Although Pakistan’s currency has been depreciating against the dollar for a long time, it has depreciated sharply over the past three years.

The rupee has continued to depreciate in the current government compared to the previous government, which is now depreciating more than ever, and last week the rupee depreciated to 168.91 against the US dollar.

Economists say one of the reasons for the rupee’s depreciation is the pressure on Pakistan’s central government to repay foreign loans.