Global supply chains and energy prices remain unstable as the Ukraine war rages on. Global energy prices have been pushed upward by the Ukraine war. Oil and petrol are heavily imported into Pakistan. Pakistan’s inflation was greatly impacted by the rise in petrol prices Moreover, depleting foreign reserves too hurt Pakistan’s economy. As a result of lower foreign reserves, PKR’s value against the dollar plummeted significantly. In terms of performance, the PKR was the world’s worst currency in July.

A weaker PKR or an appreciating dollar added to the worries of ordinary citizens. Inflation increased as a result of a weak PKR.To curb capital outflows, the government rushed to adopt a variety of measures in the shape of putting restrictions on imports. As a result of depleting reserves, Pakistan sought financial assistance from its friendly countries. Thanks to international donors that contributed to boosting economic confidence through their loans. After losing the considerable value of PKR in July, the Pakistani Rupee recovered its value in August against the dollar and is considered one of the best-performing currencies in the month of August. Following an economic crisis, the economy appears to be recovering. The IMF tranche to be released soon may improve economic prospects in the months to come.

QASIM JAN,

Kech.