In a press conference held at the Karachi Press Club on Saturday, Interim Information Minister Murtaza Solangi announced that petroleum prices are anticipated to decline, offering much-needed relief to consumers. The positive development comes as the local currency, the Pakistani rupee, continues its impressive recovery against the US dollar.
Solangi attributed this remarkable turnaround to the recent strengthening of the Pakistani rupee, which has gained significant ground against the US dollar, appreciating from Rs. 30 to Rs. 35. This surge in the rupee’s value is primarily attributed to a rigorous crackdown launched by the interim government against black market dealers and smugglers over the past few days.
The military-backed operation targeted hoarders, currency smugglers, and black market dealers following a period where the rupee had plummeted to a historic low of Rs. 308 in the interbank market and exceeded Rs. 330 in the open market earlier this month.
As of the latest update, the Pakistani rupee has rebounded to 291.76 per dollar in the interbank market, marking its highest level since September 5. It has appreciated by Rs. 15 since that time, thanks to increased dollar inflows from exporters, remittances, and the central bank’s concerted efforts to promote legal channels for foreign exchange transactions.
Minister Solangi emphasized that although the interim government does not directly control fuel prices, the anticipated reduction in oil prices is a direct consequence of the strengthening rupee. This news will be welcomed by the general populace, particularly after the previous fuel price revision on September 16, which saw petrol and diesel prices reaching historic highs and causing widespread concern among consumers. As of now, petrol is priced at Rs. 331.1 per liter, while high-speed diesel is available at Rs. 329.19 per liter.
In addition to the positive outlook for the rupee, Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), expressed optimism that the government’s crackdown on currency-related malpractices would further bolster the rupee’s position, potentially bringing it below Rs. 250 per dollar. Bostan also revealed that the crackdown had exposed illicit collaborations between black market operators and banking personnel, leading to illegal dollar trading through hawala/hundi channels.
This news brings hope to consumers and the business community alike, as a stronger rupee and declining petroleum prices are expected to alleviate the financial burden on the Pakistani populace and boost the economy.
