50 years ago: When banks closed for two days in Pakistan following devaluation on 19-Nov-1967..

India devalued the Rupee in 1966 amidst fair bit of drama.

Pakistan followed in 1967 with its own set of drama:

The Government of Pakistan has directed all banks in the country to remain closed on Nov 20 and 21. The decision was taken following the devaluation of the pound sterling.

Meanwhile, a high-level meeting was held here this evening [Nov 19] at the residence of the Finance Minister, Mr N.M. Uquaili, to examine the likely effects of the devaluation of the pound sterling on Pakistan’s economy. The meeting, presided over by the Finance Minister, was attended by the Industries Minister, Mr Altaf Husain, Commerce Minister Nawabzada Abdul Ghafoor Khan of Hoti, the Deputy Chairman of the Planning Commission, Mr M.M. Ahmed, the State Bank Governor, Mr M. Raschid and the Secretaries of the Ministries of Commerce and Finance.

Earlier in the morning, senior officials of the Ministries of Commerce and Finance, the State Bank and the Planning Commission spent long hours together calculating the possible effects of the pound devaluation on Pakistan’s external trade and rupee.

A meeting of the Central Cabinet is likely to be held tomorrow or the day after to examine the problems that might follow the pound devaluation, in the light of the conclusions reached at today’s high-level meeting.

The Government of Pakistan was warned of the pound devaluation by the British Government many hours before it was announced in London on Saturday. A meeting of the senior officials of the concerned Ministries and departments was convened soon after. The meeting recommended to the Government that pending a final decision all banks in the country be ordered to remain closed for two days — Monday and Tuesday.

Though no official comment was available here today, the consensus among the official circles appears to be that the Pakistan rupee might not have to be devalued.

Hmmm…How authorities keep driving the monetary system from one chaos to another…

Pakistan went through a devaluation recently in 2017 as well with its fair bit of drama. Though this time banks were not closed..

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: