Pakistan’s business community is worried as the US Senate introduced a bill seeking investigation of Islamabad’s role in the Taliban comeback in Afghanistan.
According to a report in Dawn, “The current handling of affairs by the government, particularly after the Taliban takeover in Afghanistan, has perturbed the private sector.”
The report said that the captains of several companies “are particularly uncomfortable over the growing critical voices against Pakistan and the threat of a probable backlash from the West and the East for aligning too closely with an ultra-conservative regime next door.”
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Meanwhile, Pakistani Rupee has been losing its sheen against the US dollar. The Pakistani rupee, on July 1 was below 160 to a dollar. Today it has breached the 170 to a dollar mark—in just three months.
Khaleej Times noted that several economists have opined that the widening current account deficit will continue to weigh on the country’s currency amid rising political and economic uncertainties due to the turmoil in Afghanistan. This will have a further impact on the Pakistani currency.
Fitch Ratings in its report said, "Our expectation for the currency to weaken further is based on Pakistan's worsening terms of trade, tighter US monetary policy, alongside the flow of US dollars out of Pakistan and into Afghanistan."
