FOREX TRADING : CAN RGST ESTABLISH STABILITY IN PAK FOREX MARKET

In light of the diminishing strength of Pak rupee against other currencies, Revised General Sales Tax is scheduled to the implemented to maintain stability in forex market. Such step is taken in lieu of the inflation which can serve as an additional blow to FX market. Interest rate is also increased by 0.5 % to manage inflation but such a rise can result in a decline in exports and also discourage investment; which in turn will cause a further instability in forex market. Caution shall be exercised in the implementation of such reforms because any miscalculation can further be a reason of the fall or loss to the all ready shedding purchasing power of Pak rupee.