Economic Uncertainty Feels Artificial: Dr. Asim

How is it possible that the USD rate at the Pak-Afghan border is almost Rs.300 and it only cost between 80 to 90 rupees in Afghan markets?

Dr. Muhammad Asim gave his lecture to Research Associates in the seminar on the “Current Political Economy of Pakistan” on March 02, 2023. While highlighting the economic indicators, he says that the uncertainty in the Pakistani economy seems to be a part of a “planned project”. He says that confusion triggers when a question arises “how and why the US dollar at the Pak-Afghan border is selling around 290 to 300 PKR, but when it reached the Afghan market, it sold at only 80 to 90 rupees?” “How can any businessman or a company sell an expensive product on cheap prices?”

This question increases the uncertainty in the Pakistani market, and people along with political economists seem to be demanding the government that “if US dollars are being smuggled or transferred to Afghanistan, the government of Pakistan must ask the responsible institutions for such trafficking of USD rather than to impose heavy taxes on the poor people. He further says that the exit from economic uncertainty is only possible if the government of Pakistan will install administrative structural changes as China and UAE have also advised for such changes before asking for any financial assistance in the future. Moreover, the same demand has also been highlighted by the IMF. If a staff-level agreement with IMF is not being exhibited now, the basic reason behind this, the “government is not desiring to introduce administrative structural changes but only trying to impose heavy taxes on the poor people”.

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