Devaluation of Pakistani rupee against dollar has almost halted economic growth in the country, badly hitting all the important areas of economy from agriculture to industry; manufacturing to import of goods; IT sector to students studying abroad for higher education.

The depreciation of rupee against dollar by almost 45 per cent during the last four months, has already bogged down the business class, which seems quite perturbed about future prospects. All hopes are pinned on the government to unveil some bailout package to stabilise the economy.

The officials said that the government is unable to decrease the fuel and fertiliser prices due to the record devaluation of the currency against dollar despite the drop in prices of these commodities in the international market.

The depreciation of the currency is also multiplying the cost of doing business and badly affecting the industrial, manufacturing and agriculture sectors as Pakistan has to import fertilisers, food items and industrial raw materials. The economic pundits said that the import bill of the country would swell to a considerable extent as what they said the crisis-hit Pakistan was importing a number of necessity goods including food items apart from luxury items at present.

"Only the pharmaceutical industry is importing about 90 per cent of the raw material and this alarming depreciation is sharply increasing the input cost," said Shahzeb Akram, vice-chairman Pakistan Industrial and Traders Association Front (PIAF).

He further said that the prices of all medicines would shoot up in the country in the days to come as the pharmaceutical industry is importing raw material, the price of which has surged due to devaluation of currency.

Waqas Ahmed an auto-dealer said that the prices of autos, spare-parts and other imported material related to this industry has also surged in the local market due to devaluation of the currency.

Ex-Chairman Pakistan Steel Industry Association Malik Tariq Mahmood said that the owners of steel factories have been badly affected due to increase in steel prices, which is deplorable. Increase in dollar rate means devaluation of rupee, which is unbearable, he said and urged the government to make the economy stand on its feet.

He further said that the steel prices had also increased due to depreciation of rupee therefore concrete steps should be taken to stabilise the economy.

Ramzan Rafique, an agriculturist said that the rising fuel and fertiliser prices also increased the cost of growing agricultural products. Now the prices of fertiliser has dropped in the international market but its prices would not decrease in the local market due to depreciation of rupee. The government, already facing severe liquidity crunch, would have to give 27 billion rupees (US$333.33 million) subsidy on fertiliser to increase wheat production in Pakistan to overcome food shortage.

Khalid Raheel a local businessman said that the depreciation of rupee is also affecting the students studying abroad for higher education. "Six months earlier, I had to pay approximately 62,000 rupees or $1000 as education fee of one semester for my daughter who is a university student in California. Now I had to pay about 85,000 rupees for one semester due to the depreciation of the rupee," he maintained. He also said that the education cost and visa fee for the students who wanted to get education abroad has also surged by 50 per cent due to depreciation of rupee against dollar.

"The parents will not be able to send their children abroad for higher education if the fall of rupee continues," he added." The country is already facing severe financial crunch due to increasing trade and budget deficit, balance of payments and global food inflation. Inflation is above 24 per cent in the country while the food inflation is touching record high above 32 per cent.

Last Friday, the dollar was traded at little above 86 rupees in the open market. The record devaluation of rupee against dollar caused panic in the business community followed by rumours of country's bankruptcy. The country's economy is still in the grip of fear though the central bank of the country has announced 270 billion rupees rescue plan.