Grappling with an imbalanced economy

While the authorities struggle with structural policy reforms, regulatory and administrative measures have made some incremental gains. Owing to the rupee’s appreciation against the dollar over five consecutive weeks, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI ) said Pakistan’s external debt had reduced by a staggering Rs400 billion. The dollar trading at Rs336 on September 4 came down to Rs276 in mid-October. The yield from the crackdown on speculative currency trading and dollar smuggling was close to $900 million. On the back of a stronger rupee and the current trend of falling international petroleum prices, the government sharply revised the prices of petroleum products on October 15. Petrol prices were reduced by Rs40, diesel by Rs15 and kerosene oil by Rs22 per litre.