Given the recent devaluation of Rupee against Dollar, Importers fear they may as well be importing inflation into the economy. The fall in Rupee’s value has had importers scratching their heads.

On the other hand, Exporters continue to delay their outbound exports, in wait of more lucrative rates.

Moreover, Money Dealers see a dearth of greenback supply as demand goes through the roof. With SBP putting itself in the spectator mode, the question of stable dollar rate seems farfetched at least for now. Pakistan’s Trade deficit has widened at an alarming pace since last decade with situation getting worse during last 5 years. In an import heavy economy, the local currency depreciation can wreak absolute havoc on its population.

Government’s attempts to hinder imports have proven futile, as Pakistan relies on its day to day life on imports. From cooking oil to Furnace Oil, an average Pakistani consumes spends most of his income on imported items. As import costs increase, as a result of Rupee weakening, the general populace will definitely feel most pressure. The situation is to worsen in the coming few months, as repayments against foreign debts are expected to begin from the first quarter of 2018. 

In Pakistan’s Import Items list; Petroleum Group accounts for nearly one fourth of all imports. Machinery and Agriculture imports are second in line. In addition to that, Vehicle Imports and Food Imports also hold major share in the import lists. The logical outcome of the Rupee weakening will translate into the everyday prices of consumer items.

Manufacturers of vehicles, motorbike, other appliance makers are waiting for steady trend of rupee vs dollar parity, these manufacturers would decide the price of tag of the commodities.