Question

consider the information about the economy of Pakistan note that the currency of Pakistan is the rupee

Answer 1

Pakistan is facing severe inflation and debt burden as it has not been able to grow as expected. This has led to severe depreciation in the currency of Pakistan as there is no demand for the currency and no substantial foreign direct investment. The exports are also marginal as compared to the imports imported because of heavy dependence on oil. It has depreciated against the US $ from $1 equivalent to 100 Pakistan rupee in mid 2018 to $1 = 154 Pakistan rupees currently. This creates severe burden as trade and world economy is driven by dollar.