After nearly three months in office, the coalition government has achieved a significant milestone in a nation plagued by inflation. Surprisingly, the new finance team has managed to stabilize the currency—albeit through manipulation.
A prominent currency dealer based in Karachi, who previously collaborated closely with the Finance Division in 2022, informed ProPakistani that manipulation of the PKR is still ongoing. “In 2022, commercial banks were implicated in forex market manipulation for profit,” he stated. “Today, the central bank is intervening by purchasing interbank dollars to stabilize the PKR. This raises concerns, especially with an IMF tranche and Saudi investments looming on the horizon. This is not the ideal time for recklessness.”
The PKR has not only halted its daily declines but has also experienced a significant surge in a crucial foreign exchange market, particularly against the USD. It has rallied by 1.2% against the dollar over the past three months, coinciding with the blue-chip era of the Special Investment Facilitation Council.
