Pakistan may devalue rupee

ISLAMABAD, Jan 25: Pakistan has hinted at a possible devaluation of its rupee and introduction of a dual exchange rate mechanism to minimise the adverse impact of post-nuclear test economic sanctions.

Finance minister Ishaq Dar told reporters here that his government was contemplating various measures like devaluation to minimise effect of sanctions on the economy following Pakistan8217;s nuclear tests last may. Apart from a mild downward adjustment of the rupee, the government is also considering introduction of a dual exchange rate system to discourage non-essential imports while boosting exports, he said.