The Effect of Externalities on Deprecation of Pakistani Rupee

Abstract

The deprecation of Pakistani currency is a major threat to economy. The low production and less foreign investment are the prominent issues in the depreciation of economy. The gap between imports and exports are widening year by year which will increase cost of every commodity. As, Pakistan is a developing country and the economic growth can only come by attracting higher foreign direct investment in industrial sector and effect of dollarization is reduced. Taxes should be imposed to strengthen the economy. These elements in a broader aspect will be focused to eliminate deprecation from economy.