That Pakistan rupee (PKR) got its breath back in recent days is a fact. It has clearly put up a sterling performance for at leave five consecutive days. Increasing political stability has helped arrest the woeful slide of the Pakistani currency. It is needless to say that the country’s economy, including businesses, suffered immensely due to protracted political strife in recent days and weeks. PKR was one of the casualties of growing political instability in the country.

Although the current market sentiment is driven by the election of Shehbaz Sharif as new prime minister of the country, it is not known that this sentiment will be sustainable even in short term owing to a variety of factors. One of these factors is Pakistan Tehrik-e-Insaaf (PTI), the party that was ousted from power following a successful no-trust vote against its prime minister, has taken to the streets to dislodge the incumbent government. The recent gains made by PKR could be only short-lived.

Shahid Burney (Islamabad)

Copyright Business Recorder, 2022