Devaluation lead to higher cost of imports particularly those of industrial raw material, spare parts, inputs for agricultural sectors, machinery, transport equipments defence equipments, main food items like wheat and edible oil. Consequently, the cost of production of domestically produced goods increased. Davluation also increased the burden of foreign debt and its servicing charges as well which, in turn, increased the cost of production for which such loans were extended, their prices increased.
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